Ocado Group has posted robust first-half results driven by its Technology Solutions division, which more than doubled EBITDA to £72.8m whilst expanding margins from 14.4% to 26.3%. Group revenue climbed 13.2% to £674.0m, with Technology Solutions up 14.9% and Ocado Logistics advancing 12.1%.
The company’s adjusted EBITDA surged 76% to £91.8m from £52.0m in the prior year, reflecting the growing profitability of its international partnerships and operational improvements across its automated fulfilment network. Investors will be pleased to see the group consistently turning a profit after a prolonged period of being loss-making.
Technology Solutions EBITDA surged to £72.8m in the first half from £34.8m in the same period last year.
“Ocado Group has delivered a strong first half and we have reached important milestones both in our UK business, as well as across our international partnerships,” said Tim Steiner, CEO of Ocado Group.
“Our Technology Solutions division has more than doubled EBITDA and our underlying cash flow has improved significantly, ending the period with liquidity in excess of £1 billion. Our focus remains on turning cash flow positive during FY26, supported by continued growth with our partners and cost discipline across the business.”
CFC Network Expansion Accelerates
Many have viewed Ocado as a technology business with a bolt-on retail arm, so slow progress with the rollout of their Customer Fulfilment Centres (CFCs) was a major concern in recent years. Thankfully, things look to be improving.
Ocado’s CFC network is building momentum, with total weekly volumes across the global network growing 23% year-on-year. The group now operates 119 live modules, up from 112 at the half-year mark, with average live modules increasing 8.9% to 122.
The rollout of Re:Imagined technologies continues to unlock additional capacity for partners. In Detroit, Kroger’s CFC has achieved 50% more throughput than its original design capacity, prompting an order for an additional module expected to go live in early 2026. The deployment of On Grid Robotic Pick (OGRP) technology has reached 265 units worldwide, up from 92 at the full year, with the mature Luton CFC now processing almost 40% of volumes robotically.
Ocado expanded into two new markets during the period, launching AI-powered in-store fulfilment software in South Korea with Lotte and Saudi Arabia with Panda. Lotte’s first CFC near Busan is scheduled to go live in early 2026.
The company has extended its partnership with Spain’s Bon Preu, its longest-standing international partner, with plans for an automated CFC outside Barcelona featuring the full suite of Re:Imagined technologies. Australian partner Coles continues to report strong progress with volume ramp-up and improved customer satisfaction.
Ocado Retail
Ocado Retail maintained its position as the UK’s fastest-growing grocer for the 12th consecutive month, with revenue up 16.3% and EBITDA rising to £33.3m. The successful migration of all UK customers to the Ocado Smart Platform enables access to advanced capabilities including variable delivery slots and same-day delivery options through Ocado Swift-Router.