Ocado shares jump as group hikes profit forecast

After strong trading, Ocado (LON: OCDO) has hiked its profit forecasts.

Whilst many other retailers are struggling amid the pandemic, the online grocer said on Monday that trading remains strong.

“Ocado continues to see high demand as consumers migrate to online grocery in record numbers. Sales are in line with the trends reported in the Third Quarter although growth rates reflect the seasonality of the quarter,” said the group.

“As a result of this strong performance, Ocado Group today announces that it expects full year EBITDA for the group to be over £60m, versus previous guidance of over £40m,” it added.

The firm has also announced plans to buy robotics specialist Kindred Systems and Haddington Dynamics for $262m and $25m respectively.

“Given the market opportunity we want to accelerate the development of our systems, including improving their speed, accuracy, product range and economics,” said chief executive, Tim Steiner.

“I am delighted to be welcoming Kindred Systems and Haddington Dynamics to the Ocado group, as we believe they have the capabilities to allow us to accelerate delivery, innovate more, and grow faster. I am also excited by the opportunity to enter new markets for robotic solutions outside of grocery that is demonstrated by Kindred Systems’ robust growth, with existing customers such as Gap and American Eagle across the general merchandise and logistics sectors.”

Ocado shares (LON: OCDO) jumped 9% to 2,479p on Monday. They are currently trading 8.86% higher at 2.477,74 (0957GMT).

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Safiya Bashir
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.