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Regarding overseas CFC contracts it is my understanding that Ocado receive some upfront cash fees, which they book as received when the CFC opens. Ocado pay the majority of the CFC build out costs then Ocado receive a rumoured ongoing 4-5% of every items value that passes through the CFC. Then there are some additional ongoing platform fees paid by the grocer concerned. The recurring 4-5% value fee of every small item that is processed in the overseas cfcs is the bulk of the fees Ocado receive.

That 4/5% figure was re Ocado facilitating orders for Kroger. All Ocados contracts are not public information. This figure was estimated by an informed analyst. Will dig out the source later.

I sent you a link before to Ocado reimagined Casapinos, have you watched that 1hr presentation? Until you've seen Ocados latest tech you will just have more questions than answers. There was a big leap forward in that tech release in January this year which you seem unaware of.

The current share price assumes there will be further contracts to come. As a result of Ocados latest tech release I believe the contracts will be signed quicker and in greater frequency. This will justify the share price and push it upwards..

To add, will grocery companies develop their own automated systems or use other tech providers?

If anyone answers yes they will use other providers and yes to the previous 2 questions then they should be able to see the bull case for Ocado..

To put it basically..

Internet grocery shopping is an increasing trend around the globe, yes/no

To satisfy this increasing trend will the preparation and delivery of these orders need to be automated, yes/no

If you answer yes to the 2 questions above then you move onto Ocados automated grocery systems. They are currently the most advanced in the industry. Ocados tech has contracts in 8 countries. It could well have many more in the future. For each order Ocado facilitates Ocado receives a fraction of the total value, thought to be 4/5%

There are great profits to be had for Ocado in the future
If Ocado signs many more contracts its share price will rise a lot further..

Lol Chris,

Pursestrings, other companies will be looking over Ocado right now. Yes m&a possibilities may well play out. Ocados tech is very valuable as the lengths Autostore are going to fight it in the courts attests. Ocados tech does suit being part of a larger company with greater financial clout who could facilitate Ocados tech rollout further and faster..

Added today at £11.08. Market overaction re today's results in my opinion. Mostly a predictable statement that was released today

Predictable results, basket size down, orders up. Down versus last year's lockdown covid comparables. Food inflation rising steeply. Depends how much this has been already factored in by the market...

Yes, I should have been more specific re that comment OWLS. I was outlining that market conditions for growth shares yesterday were very poor. All shares that have some slight similarities to Ocado were heavily down. Autostore, ASOS, BOO, THG etc were all down 4%+

That Polish contract news saved Ocado shares from a beating yesterday.

Given extremely poor overall market conditions expectation would be for Ocado to be down 3-4% or more without today's contract news..

Oil is being brought down in price also due to Chinese covid city lockdowns. That's having a big hit on their economic activity currently.

Ordinarily Ocado shares would have been down 2/3% currently given the very poor overall market. China US talks re Russia weighing on the market.

Ocados Poland deal is a small one but it's good news...

So Ocado now has 2 country contracts with Auchun group, Spain and Poland. Below are the countries that Auchun group has stores in.. Romania, Hungary looking likely for the next Auchun Ocado contract in my opinion..

France, Spain, Luxembourg, Portugal, Poland, Romania, Hungary, Russia, Ukraine, Taiwan, Senegal, Mauritania,Tajikistan, Tunisia

Yes, superb news chilting! Ocados reimagined technology bringing in new tech contracts. Superb likelihood of more Auchun contracts in other geographies to follow in the coming months..

Announcement of partnership between Ocado Solutions and Auchan Retail Poland

We are pleased to announce the signing of an agreement between Ocado Group plc ("Ocado") and Auchan Retail ("Auchan") to partner with Ocado Solutions Limited to develop Auchan Retail Poland's ("Auchan Poland") online business using the Ocado Smart Platform ("OSP"). This agreement marks the second Auchan business to partner with Ocado Solutions.

Auchan Poland and Ocado will initially build a Customer Fulfilment Centre (CFC) to serve the Warsaw region, beginning in 2024, with additional CFCs to be announced at future dates. Auchan Poland will also leverage Ocado's In-Store Fulfilment (ISF) software across its hypermarkets nationwide to enable more efficient picking from those stores. The agreement will cover both its food and non-food business.

Auchan Poland will also benefit from the enhancements announced during Ocado's Re:Imagined event in January, such as the latest generation 600 Series bot, Automated Frameload and On-Grid Robotic Pick. Alongside physical fulfilment solutions, Ocado will provide OSP's end-to-end software platform and a comprehensive suite of engineering and support services to ensure the smooth launch and ongoing development of its ecommerce operations.

The structure of fees agreed with Auchan Poland are similar to those agreed with other international Ocado Solutions partners. Auchan Poland will pay Ocado certain fees upfront and during the development phase, then ongoing fees linked to both sales achieved and installed capacity within the CFC and service criteria.

Ocado Group and Auchan Retail will continue to explore the potential to further develop our relationship with partnerships in other geographies.

The agreement is mutually exclusive in Poland on the basis of Auchan Poland, in the longer term, meeting market share targets or ordering an agreed amount of CFC capacity per annum.

Gio, Q1 trading statement is on Thurs. It is just figures for Ocado retail. Of course volatility could occur as always with this share but usually it is the Ocado Solutions results that really drive the share price.

As chilting said there is no current link between Ocado and Amazon. Amazon would certainly benefit greatly from Ocados technology so it's possible there's a deal between the two companies in the future.

Have a look at Ocados latest technology and decide for yourself as to the potential of it:

https://www.ocadogroup.com/our-stories/ocado-reimagined

Good possibility of future tech deals for Ocado in the coming months. Ocado has current deals in Spain, France, Australia, Japan, USA, Sweden, UK, Canada. Many of these partners are increasing their orders for Ocados technology as the online grocery market expands..

I'd never work for Boris Gio. Am just telling as it is. It was a near certainty that Ocado would win the ITC case. The Ocado share price should rise only a v small amount on that news. Ocados been built into a £8/9 bill company, it's no disaster. And the story is not over yet despite so many writing this company off currently...

It's up a fraction currently. As mentioned earlier the ITC case was extremely likely to rule in Ocados favour given there was a unanimous interim judgement earlier in this ITC case. The case win was little surprise..

Good points Casapinos, have you looked over Ocados new lighter robots, robotic on grid picking and grid that can be installed in existing buildings? This was announced in the reimagine Ocado presentation recently in Jan.

https://www.ocadogroup.com/our-stories/ocado-reimagined

It answers your doubts about how quickly the solution can be rolled out. It is now much faster. More contracts will follow imo..

And the bounce continues... Ocado have several cases against Autostore seeking damages for infringed patents. They are also pursuing Autostore paying Ocados legal fees in failed Autostore cases where possible.

Of course Autostore continue to stick to their narrative that they will win court cases against Ocado. They made very strong statements early on showing they were "all in" re these legal cases, they can't change that view without a big loss of face and loss of investor confidence.

RNS just out from Autostore as below. Autostore have lost the ITC case versus Ocado in the US. Previously they had the interim judgement on the case go against them. They intend to appeal.

Nedre Vats, 10 March 2022. AutoStore Holdings Ltd. ("AutoStore" or the
"Company", OSE ticker code "AUTO") today announced that it intends to appeal to
the U.S. Court of Appeals for the Federal Circuit the decision of the
International Trade Commission ("ITC") in the case AutoStore brought against
Ocado Group plc and certain of its affiliates ("Ocado") concerning the Ocado
Smart Platform ("OSP"). The Commission today affirmed the initial decision by
Judge Charles Bullock on 13 December 2021, which found that despite Ocado's
infringement of the patents asserted by AutoStore, those patents were invalid.

The outcome of these proceedings has no effect on AutoStore's global
operations. As the pioneer of cube storage automation, AutoStore has secured
hundreds of patents since its founding and continues to develop the next
generation of robots and solutions to remain the technology leader in this
space.

As previously disclosed, the initial determination found that although Ocado's
OSP infringes on three of AutoStore's patents, these patents were invalid based
on a narrow legal issue. The initial determination also rejected Ocado's
assertion that the patents are unenforceable due to inequitable conduct or
equitable estoppel.

Separately, the substantive hearing of AutoStore's patent infringement claim
against Ocado in the UK High Court begins on Tuesday 15 March 2022. AutoStore
launched this infringement claim in October 2020. The trial is set to last four
weeks in total, with the initial part of the hearing scheduled for 15 to 22
March.

As communicated on 24 January 2022, AutoStore sharpened its action in the UK
proceedings to focus on three particular patents, known collectively as its
"Central Cavity Patents," to further strengthen its UK infringement case against
Ocado. AutoStore has also since added and asserted at least one additional
patent against Ocado which will be the subject of a further trial to be heard in
April 2023.

Having done that, AutoStore will discontinue an appeal in the European Patent
Office (EPO) against a first instance decision of the EPO in March 2021 in
relation to one of its patents (EP 847) because that patent is no longer
relevant to AutoStore's UK infringement case and this step strengthens
AutoStore's case. AutoStore remains confident that it will prevail at trial in
its UK infringement action, and the decision of the ITC has no bearing on that
action.

Bayobach, Past performance is not a guide to future returns. Strong day from Ocado today against a very poor overall market. Bounce up from 1070p continues..