Ocado swing to first-half loss as investment spending offsets revenue rise
StockMarketWire.com - Online grocery retailer Ocado Group swung to a first-half loss after investments in its logistics and technology platform offset a rise in revenue.
Pre-tax losses for the six months through 3 June amounted to £9.0m, compared to a £7.7m profit on-year.
Revenue grew 12.1% to £799.9m, while retail revenue grew 11.7% to £736.6m.
Ocado stuck to its full-year guidance for 10-15% growth in retail revenue and total capital expenditure of around £210m.
'This is a transformational period for Ocado,' chief executive Tim Steiner said.
'We have developed unique and proprietary technology to offer retailers an end-to-end operating solution for grocery retail that enables them to meet the changing needs of consumers.'
'In the past six months we have partnered with some of the world's, biggest, best and most innovative retailers to help them redefine the shopping experience for their own customers. As a result, we are beginning to fulfil our ambition to change the way the world shops.
'In order to fully capitalise on the opportunities ahead of us, we are working at pace, investing more and focussing sharply on execution to bring on new capacity in the UK and to achieve successful outcomes for our partners.'
'We are confident that we have the ability to scale-up the business, deliver on our commitments, drive sustainable growth and deliver value to all our stakeholders.'
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