Ocado Group has reported a significant reduction in its full-year losses as the company benefits from a growing consumer shift toward online grocery shopping.
In its financial results for the 52 weeks ending December 1, 2024, Ocado’s pre-tax losses declined by 4.9% to £374.5 million, compared to £393.6 million the previous year. This improvement was driven by strong sales performance across its various business segments.
Total group revenue rose by 14.1% to £3.16 billion, bolstered by an 18.1% increase in technology solutions revenue, which reached £496.5 million. Additionally, Ocado’s logistics arm experienced a 7.6% growth, bringing its total revenue to £718 million.
Ocado’s retail business, a joint venture with Marks & Spencer, demonstrated robust growth, with sales climbing 13.9% to £2.69 billion. This was supported by a 12.5% increase in weekly orders, reaching an average of 442,000 orders per week.
The company’s financial performance was further strengthened by a threefold increase in adjusted EBITDA for Ocado Retail, which surged from £10.4 million to £44.6 million. Gross profit also experienced a notable rise of 14.7%, reaching £914.3 million.
Ocado attributed its success to ongoing enhancements in its service offerings, including improved product availability, expanded delivery slots, and an extended shelf life for produce, which now lasts an average of half a day longer.
Tim Steiner, Chief Executive of Ocado Group, highlighted the company’s progress in robotics and automation, stating, “In 2024, we delivered a shift in the potential of robotics and automation to improve retail supply chains. Our latest technologies have begun to roll out at scale to Ocado’s global partners.”
Steiner emphasized that Ocado’s advancements have nearly doubled productivity within its customer fulfillment centers over the past decade. He also noted that online grocery shopping remains a major driver of organic growth worldwide, positioning Ocado’s partners to capitalize on this trend.
In the UK, Ocado Retail continues to stand out as the fastest-growing grocer in the market, achieving a milestone of one million active shoppers for the first time.
As Ocado continues to leverage its technological innovations and strengthen its market presence, the company remains focused on sustaining its upward trajectory in the evolving grocery retail landscape.