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* 2021 core earnings fall 12.1%
* Warns 2022 core earnings won't meet market expectations
* Capex to rise to around 800 mln stg in 2022
* Says has encouraging pipeline for new deals
* Shares down 10.3%
(Recasts with finance chief's comments, shares)
By James Davey
LONDON, Feb 8 (Reuters) - Ocado Group, the British
online supermarket and technology firm, warned on Tuesday that
core earnings in 2022 would fall short of market expectations as
it steps up investment, hammering its shares.
The group reported a 12.1% fall earnings before interest,
tax, depreciation and amortisation (EBITDA) to 61.0 million
pounds in the year to Nov. 28 2021 as investment in the business
more than offset an increase in revenue.
The outcome was a touch above analysts' average forecast of
60 million pounds but down from 73.1 million pounds in 2020.
Analysts had on average been expecting EBITDA to rebound to
92 million pounds in 2022.
However, Chief Financial Officer Stephen Daintith told
reporters the group was planning 30 million pounds more
investment in its International Solutions technology business in
2022 than the market had been expecting.
"That would imply therefore a 30 million pound lower EBITDA
for that segment in 2022 than current consensus and therefore a
similar lower level for the group number," he said.
Ocado forecast flat EBITDA for International Solutions in
2022 but a 50% increase in the UK technology business.
Shares in Ocado were down 10.3% at 0912 GMT, extending
losses over the last year to 54%, which also reflects investor
concern over ongoing two-way litigation on patents with
Norwegian rival AutoStore.
Ocado's pretax loss widened in 2021 to 176.9 million pounds
from 52.3 million pounds in 2020.
Revenue rose 7.2% to 2.5 billion pounds, while capital
expenditure increased 154.8 million pounds to 680.4 million
pounds reflecting increased investment in the roll-out of
automated warehouses in Britain and overseas, along with
investment in technology development and platforms.
Ocado forecast capital expenditure would rise to around 800
million pounds in 2022, driven by the worldwide roll-out of its
platform.
The group has already struck partnership deals to provide
its technology to supermarket groups in eight countries,
including Kroger in the United States, Aeon in
Japan, Casino in France and Coles in
Australia.
Ocado said it had an encouraging pipeline for new deals.
It forecast the Ocado Retail business, a joint venture
between Ocado Group and Marks & Spencer, would return to
"mid-teens" revenue growth in 2022.
It is targeting for Ocado Retail's EBITDA margin to rebuild
towards 2021 levels following a year of investment in 2022.
($1 = 0.7393 pounds)
(Reporting by James Davey; Editing by Kate Holton and Louise
Heavens)
