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Ocado Retail Ltd on Tuesday reported an increase in revenue for the first quarter of financial 2023 as customers and orders rose. It has also backed its annual guidance.
Ocado Retail is a joint venture between online grocer and warehouse technology firm Ocado Group PLC and food, clothing and homewares retailer Marks & Spencer Group PLC, with both companies holding a 50% interest.
In the 13 weeks to February 26, Ocado Retail said revenue was up 3.4% year-on-year to £583.7 million from £564.7 million.
Average customer numbers grew 14% to 951,000 from 835,000 the year before. Average basket values edged up 0.2% to £124, thanks to average selling prices rising by 8.3% to £2.75 from £2.54, but average basket sizes fell by 7.5% to 45 items from 49.
‘While the trading environment remains challenging, we expect to build momentum through the second half of the year, as we improve our proposition, grow our customer base, and no longer lap Covid shopping behaviours. This solid 2023 performance will enable us to return to sales growth and profitability,’ said Ocado Retail Chief Executive Officer Hannah Gibson.
Ocado Retail left guidance unchanged from what was issued by Ocado Group at the end of February, expecting mid-single digit growth in revenue, and ‘marginally’ positive earnings before interest, tax, depreciation and amortisation.
Ocado Group shares were down 5.8% at 425.70 pence each on Tuesday afternoon in London. Marks & Spencer shares were up 1.7% at 157.67.
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