Ocado shares up 3% on “consistent strong” growth

In the group’s latest trading update, Ocado has revealed a strong growth in revenue and sales.

In the three months to 2 December 2018, the online grocer it has seen a “consistent strong” growth, with a 12% rise in retail revenue.

The chief executive of Ocado, Tim Steiner, said in a statement: “Our unrelenting focus on delivering consistent high levels of service and value to our customers in the U.K. has produced another quarter of satisfying growth.”

“The new capacity that we have brought on stream in CFCs three and four in Andover and Erith has enabled us to again report double-digit growth in new customer acquisition. Both facilities are performing well and Erith continues to ramp up in line with our expectations.”

“Although in many respects 2018 has been a transformative year for Ocado, the story has only just begun. We look forward to the coming year and continuing to turn our substantial opportunities into sustainable value for all our stakeholders,” he added.

The number of average orders per week has increased in the 4th quarter by 13.1% from 283,000 in the same period last year to 320,000. The size of the average order, however, sank by 1% to £104.91.

For the full-year results, the online grocer expects 10 to 15% growth.

This year saw Ocado complete partnerships with tech groups including Kroger, causing shares to soar 126% over the year.

Richard Hunter, the head of markets from Interactive Investor, said: “The company’s start to life as a supermarket delivery company has long been eclipsed by what is under the bonnet. Ocado’s cutting-edge technology platform, which is being rolled out in the UK apace, has caught the eye of a number of global players keen to link into its order fulfilment capabilities.”

Shares in the group (LON: OCDO) are currently trading +3.28% (1004GMT).

 

 

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