Ocado Retail has announced a significant upgrade to its revenue guidance for the fiscal year 2024 after a bumper period of trading for its joint venture with Marks & Spencer.
Ocado has revised its previous projection of mid-to-high single-digit revenue growth to a low double-digit percentage increase. This upward adjustment follows an impressive third-quarter performance, in which retail revenue surged by 15.5% to reach £658 million. Profit guidance remains unchanged.
The decision to raise revenue guidance is underpinned by Ocado’s remarkable streak as the UK’s fastest-growing grocer for seven consecutive months. Investors have dumped Ocado’s stock this year on concerns about the technology side of the business, but the retail run should be something to take some encouragement from.
Ocado’s pricing mix has helped support sales and grow average weekly orders. Total items sold increased 15.4% year-on-year, and average weekly orders rose 14.7%, reaching 437,000. Ocado’s active customer base expanded 10.3% year-on-year to 1.06 million.
Ocado has managed to maintain a broadly flat average basket value of £120.97.
“Our strategy remains focused on giving our customers unbeatable choice, unrivalled service and reassuringly good value. We’re seeing the momentum of this, with more customers shopping with us more often, getting even better service at better value,” said Hannah Gibson, Ocado Retail’s Chief Executive Officer.
“We know what our customers love, and we’re focused on our proposition every day. This includes our widest ever choice including more M&S food, more convenience with better availability of delivery slots and products, further improving our high perfect order rate and better value for money through our Ocado Price Promise and our latest Big Price Drop.
“We’re pleased with the progress we’re making and excited about how much more there is to deliver.”