- Ocado reports earnings for H1
- The online supermarket firm reported a first half loss
- Shares fell almost 4%
Online supermarket and technology firm Ocado has dipped 3.9% in early Thursday trading after it reported a first-half loss driven by retail that saw a £72.8m reduction in EBITDA due to lower sales and cost inflation.
Ocado revealed its loss before interest, tax, depreciation and amortisation (EBITDA) was £14 million in the six months to May 29, compared to earnings of £61 million during the same period in 2021. Its pretax loss was £211 million.
Its Retail revenue of £1.1bn fell 8% year-over-year, which they said reflects tough comparatives as the grocery market contracted post-pandemic and the rising cost of living crisis in the UK.
The company told investors that it is on track to deliver results in line with guidance after previously slashing expectations in May.
Ocado Retail revenue is expected to grow in the low single digits due to the cost of living crisis in the UK on consumer behaviour.
“We have a clear path to >£6.3 billion in revenue and >£750 million in EBITDA in the mid-term (4-6 years),” they stated.
Given the tumble in Ocado website traffic since mid-2021, it’s no surprise the company’s retail unit hasn’t performed too well, with Covid restrictions being lifted and inflation squeezing consumer wallets.