Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
You can access analyst calls re Ocado. Below example is re RNS release of Ocados last JV trading statement in Jan 2024
"Ocado Group, on behalf of the joint-venture, will be hosting an analyst conference call at 8.00am today. Please use participant number: +44 (0) 33 0551 0200 and confirmation code: Ocado Analyst Call. A replay facility will be available through an on demand link for 90 days following the announcement."
Results time is primetime for Kroger to lay out their strategy and dispel doubts regarding their further roll out of Ocados tech. They declined.
Ocado reimagined tech has been available to order since it was unveiled in 2022. Kroger has other online grocery delivery partners, Instacart and Shipt for example. Personally I see Kroger reducing costs and altering their online delivery strategy to Ocados detriment..
Kroger's strong results were good news for Ocado but again Kroger were unwilling to commit to ordering further Ocado powered CFCs in their results presentation. The prolonged uncertainty regarding Ocados Key partnership continues to erode Ocados share price...
Yes losses should come down as demand for new Ocados CFCs has dipped. Both Ocados major partners have stalled building new CFCs. Kroger has an ongoing pause and M&S confirmed no new CFCs for at least 2 years.
The M&S dispute looks terrible for Ocado. Less so for M&S, who have the upper hand in the dispute.
Yes there were large losses in Ocados half year report. Big worry for the market though that those losses have continued to be racked up at the same rate (excluding Auto store one off funds receipt)in the full year report.
The M&S relationship has clearly deteriorated greatly since the half year report. The threat of a legal dispute takes relationship risk for Ocado to another level and has the potential to scare off future partners.
Blindingly obvious that the market is hyper concerned by Ocados recent unveiling of a £581mill loss (excluding the one off Auto store funds) and the threat of a protracted legal dispute and shortfall of received funds from their key UK partner, M&S.
Unfortunately Ocado are tied to Kroger in the US, their contract does not allow them to partner with any other US grocers.
Now that Kroger's demand for Ocados tech is stalling it puts Ocado in a bind.
One of the elephants in Ocados room is Kroger halting commissioning new Ocado CFCs. Kroger being Ocados largest client.
Some may look upon this as reverting to a positive in the future, merger gets agreed and Kroger commission more CFCs etc. I however see a large risk of the Kroger/ Ocado partnership altering or slowing down to Ocados detriment. Kroger partners with Ocado for online deliveries - true. Kroger/Albertson also has large online delivery partnerships with Instacart, Shipt, Uber, Doordash amongst others. All of these companies are heavily utilizing technology and developing automation. Likely IMO that Kroger will slow their rollout of Ocado CFCs and utilize other partners more going forward in a bid to control costs and develop a quicker online delivery response...
If you're impressed by management speak then yes the latest Ocado results were impressive. If however you are a shrewd investor who digs deeper to research then the losses become a focal point, the reality becomes clear and the results lose their lustre..
Edtheeuph
From the Ocado reimagined product launch in Jan 2022:
"partners ordering standard-sized CFCs today for delivery in H2 2023 will have the following features enabled: 600 Series bots; the 600 grid and Optimised Site Design; Automated Frameload; On-grid Robotic Pick; Ocado Swift Router; and Ocado Flex."
New style Ocado reimagined CFCs have been available for order for a while now. The speed up of new partners signing up to Ocados solutions has not materialised. .
The price target drops today are reflecting the great concern over Ocados losses. Masked this time to an extent by the one off positive Auto store cash flow.
Kroger halting commissioning more CFCs, Coles CFC delays in Australia. Ocado retail running at only 75% capacity and a legal battle threatening to open up with M&S.
Plenty of issues that are leading to the downside share drop continuing..
I believe the £67mill loss is an accounting adjustment to reflect the different accounting method used. Not part of the M&S fee that is still to be paid.
If you Google IFRS 13 fair value you'll get more information surrounding it.
Waccybaccy,
The autostore income is included in the accounts as a net adjustment figure. This positive is eaten into by other costs as below:
"6. Net adjusting items* of £23.9m primarily relate to £186.5m income from the agreement reached with AutoStore to settle IP patent legal cases under which AutoStore will pay the Group £200.0m in instalments over two years, £(67.0)m change in IFRS 13 fair value relating to the revaluation of the M&S contingent consideration and related costs, £(32.2)m UK network capacity review, £(27.4)m costs in relation to the Zoom by Ocado strategy and capacity review, and organisational restructuring costs of £(15.5)m. Other adjusting items* include costs associated with Finance, IT and HR systems transformation, acquisition costs of 6RS and litigation costs."
"Does this mean that, without the settlement from AutoStore, they would have lost more money than they did in FY22?
Correct Sharketmare. The scale of the loss is again the big drawback to Ocados share price..