Ocado reports higher revenue, guidance unchanged

By Michael Susin

Ocado Group PLC said Tuesday that first-quarter sales of Ocado Retail Group, the joint venture it co-owns with Marks & Spencer Group PLC, rose and that guidance for fiscal 2023 remains unchanged.

The online grocer and retail-technology specialist said retail revenue for the 13 weeks ended Feb. 26 rose to 583.7 million pounds ($717.1 million) from GBP564.7 million a year ago. The rise was followed by average orders per week increase of 3.6%.

While average basket value remained flat at GBP124, the average basket size fell to 45 items from 49.

Ocado backed its expectations of revenue growth in 2023 to be in the mid-single digits. It also expects to deliver marginally positive earnings before interest, taxes, depreciation and amortization while there remain many uncertainties as the focus will remain on driving efficiencies to navigate through the backdrop of the cost-of-living pressures in the U.K.

"While the trading environment remains challenging, we expect to build momentum through the second half of the year, as we improve our proposition, grow our customer base, and no longer lap Covid shopping behaviors," Chief Executive Hannah Gibson said.

"This solid 2023 performance will enable us to return to sales growth and profitability," she added.

Write to Michael Susin at michael.susin@wsj.com

- Michael Susin

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03-28-23 0242ET

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