(Sharecast News) - Ocado Retail delivered a strong finish to its financial year, with sales growth accelerating in the fourth quarter as weekly orders reached a milestone of 500,000 for the first time.
The company, which is the grocery joint venture between Ocado Group and M&S, reported retail revenues of £715.8m for the 13 weeks to 1 December, up 17.5% year-on-year and a pick-up from the 15.5% growth seen in the third quarter.
Volumes were up 17% on last year at 271.6m items, while active customers increased 12.1% to 1.12m. Average basket value, selling prices and basket size also all rose on last year, albeit only marginally.
Average orders per week were up 16.9% at 476,000, hitting a peak of 500,000 at the end of November.
"We've achieved this growth by being laser focused on customer service and delivering unbeatable choice, unrivalled service and reassuringly good value to the households and families that we serve," said chief executive Hannah Gibson.
After the period-end, Ocado Retail also delivered a record performance over the key Christmas trading period. Efficiency at its customer fulfilment centres (CFCs) improved throughout the year, with average units per hour (UPH) up 15% at 220 over Christmas; in its newest CFC in Luton, UPH reached 269 helped by a roll-out of the company's On-Grid Robotic Pick technology.
Looking ahead, the company pointed to more "market-leading sales growth and volume momentum" in the year ending December 2025. "Moreover, we expect to make further progress on driving operational efficiency and scale leverage, continuing on our journey towards a high mid-single digit adjusted EBITDA margin in the mid-term," it said.
Marks & Spencer (MKS)
Ocado (OCDO)
