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LONDON, July 14 (Reuters) - Ocado, the British
online supermarket and technology group, said it was confident
that the surge in online grocery shopping due to the coronavirus
pandemic will continue as it reported a 27.2% jump in first half
retail sales.
Industry data shows online penetration of the British
grocery market has almost doubled in recent months to 13% from
7% before the pandemic. Globally, online grocery penetration is
currently low, with significant scope for expansion.
Ocado said on Tuesday retail revenue for the 26 weeks to May
31 was 1.02 billion pounds ($1.28 billion), up from 803.2
million pounds in the same period last year, boosted by the UK
being on lockdown for nearly all of its second quarter which
drove unprecedented demand.
"As a result of COVID-19 we have seen years of growth in the
online grocery market condensed into a matter of months; and we
won't be going back," said Chief Executive Tim Steiner.
"We are confident that accelerated growth in the online
channel will continue, leading to a permanent redrawing of the
landscape of the grocery industry worldwide."
Ocado said fees invoiced to overseas technology partners
rose 58.2% to 73.7 million pounds as its international roll-out
gained pace with the opening of the its first robotic
distribution warehouses for Casino in Paris and Sobeys
in Toronto.
However, the group's core earnings, or EBITDA, fell 36% to
19.8 million pounds, reflecting increased costs from investment
in the technology business. A loss before tax of 40.6 million
pounds also reflected this investment.
Ocado, which last month raised 1 billion pounds ($1.25
billion) through an equity and bond issue, said there was no
material change to its forecasts from previous statements.
($1 = 0.7970 pounds)
(Reporting by James Davey, editing by Louise Heavens)
Ocado (OCDO)