The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
For pity's sake. No one serious buys Ocado to have a stake in their supermarket operations.
You invest here because you believe they can continue to grow the Solutions part of the business.
And Ocado is the brand that just stocks Marks products. Ask yourself why they don't want the Marks exposure as Ocado stipulate that, not Marks who would love to have their stickers on the delivery vans.
It's not a lot of money and it's in 3 years.
Sounds a lot to retail investors. The Bet365 boss took home £221m last year.
Bonus is peanuts compared to what US CEOs get. Musk is currently fighting to get his 50bn stock award.
They have multiple revenue streams. Wise is not a great comparator as Revolut do a lot more than currency exchange.
They position themselves as a finance super app. Banking services in the EU, crypto and stock trading, premium accounts with things like insurance and concierge services, business accounting tools, POS card readers for companies like Aer Lingus, remittance payments between the US and Latin America.
It might be worthwhile to get a better understanding of the business before suggesting that they are comparable to a money transfer business.
It's more like a mix of Wise, Monzo, Starling, Sum-up and WeChat.
Yeah for me it's one of the brightest prospects.
Revolut revenue was £923m in 22.
They forecast £1.7bn for 23.
https://www.revolut.com/news/revolut_invests_in_future_growth_as_revenue_tops_1bn_in_2022_expects_to_hit_2bn_in_2023/
Voila is the name of the Ocado/Sobey's Partnership. Making progress as reported last month. (Empire is the Sobey's owner)
"Empire says it is focusing on digital and data and will continue with e-commerce expansion with Voilà, loyalty through Scene+ personalization, improved space productivity and the continued improvement of promotional optimization.
In the quarter that ended February 3, Empire reports that Voilà experienced a sales increase of 16% compared to the same quarter in the prior year.
According to third-party market data, Voilà’s national market share within the e-commerce channel continues to be higher versus the same quarter in the prior year. Medline adds that the total number of orders is increasing with strong customer retention rate."
https://strategyonline.ca/2024/03/15/empire-reports-q3-profit-boost-and-voila-sales-spike/
The main issue was them getting funded in a round led by SoftBank at an elevated valuation. I think MV actually dumped some stock at the time.
So with the VC blowout their assumed market cap was downgraded significantly but now they are getting rerated.
They say they have about 40mn customers now.
MV bought a fund a few weeks back at a big discount that had Revolut as a holding.
Imagine having a fight with the in store picker over the last pint of milk
Another issue with in store picking is that supermarkets are designed like mazes to maximise customer browsing time, so often not ideal layout for pickers.
Ocado reckon the industry average for picking a 60 item order is about an hour.
They say their in store fulfilment software can increase pick rates to 180 per hour.
Well it's a positive sign that things are on track. The hope is that Auchan in Romania and Portugal might also see a need for it in addition to Poland and Spain.
Not significant news though as there would have been an RNS.
Https://www.ocadogroup.com/media/newsroom/auchan-retail-poland-live-with-osp/
Using the In Store Fulfilment ahead of building first CFC
Schroders have increased their internal valuation of Revolut to 25.7bn dollars. So not so far off the 33bn now and a lot more than MV valued it so some addition to NAV maybe coming there.
Supermarkets are having to raise wages to attract staff. One of the reasons I believe those betting on low tech solutions like in store picking will struggle to scale up to meet online demand.
I also don't see how this model can work in the long run as I don't think it's feasible to mix shoppers with increasing numbers of pickers.
Ghost stores are another alternative but staff costs remain an issue not to mention ongoing recruitment hassles as they are going to be jobs with high staff turnover.
News today of growing numbers of people economically inactive (not looking for paid work). Numbers now higher than during peak Covid.
Meanwhile, Ocado wage challenges more likely with delivery drivers but they can continue to drive cost efficiencies with the robot picking.
I wonder how long an in store picker takes to pick a 50 items order. At a large supermarket in Spain staff went round on roller skates so maybe they could try that?
Now started recruiting for delivery drivers
Well you were saying it was underpriced at £11 a share this time 2 years ago so those predictions don't seem very effective!
Surely better to try and build a multi billion pound global business and fail, than spend days on end tapping furiously on a keyboard angrily denouncing them for trying?
I mean seriously, the other day you seemed to be rejoicing at the prospect of escalating Middle East hostilities pushing the SP down further.
50 items in 5 minutes not 10