Ocado Group PLC on Tuesday said it is confident its ‘encouraging momentum’ will continue over 2024, forecasting further sales growth as it hailed a record Christmas trading period.
The Hertfordshire-based online grocer and warehouse technology firm reported an 11% annual jump in retail revenue to £609.4 million in the 13 weeks to November 26, from £549.3 million.
Ocado said this marked the fourth consecutive period of quarter-on-quarter growth. Across the full financial year ended November 26, retail revenue rose 7.0% on-year to £2.36 billion from £2.20 billion.
Trade volumes rose by 4.8% to 232.2 million items from 221.5 million items, while the average selling price was up 5.4% to £2.75 from £2.61. Further, Ocado counted more active customers in the 13 weeks to November 26, at 998,000, up 5.9% from 942,000 a year prior.
Looking at its winter period, Ocado said it delivered ‘another record Christmas’ and hit its highest ever level of sales over the peak Christmas trading period. Ocado Retail’s Chief Executive Officer Hannah Gibson said: ‘We are starting the new year with over one million active customers. Over the next 12-18 months, we will be embedding the foundations we have laid this year and raising the bar again for online grocery shopping. We have a really strong platform to build on in 2024.’
The company expects overall revenue growth in the mid-high single digits in financial 2024, among ‘sustained volume growth’ led by positive trends in customer acquisition. However, it cautioned that revenue growth is likely to be impacted by lower growth in the average selling price as food price inflation continues to decelerate.
Ocado said it continued its journey towards an earnings before interest, tax, depreciation and amortisation margin of a high mid-single digit in the midterm. For financial 2022, the company had reported a gross margin of 42.4%, up 0.8 percentage points from 41.6% in financial 2021.
Ocado will release its financial 2023 results on February 29.
Ocado shares rose 5.7% to 654.08 pence each on Tuesday morning in London.
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