- As the online grocery boom continues, the group is guiding to full year cash profits of at least £60m, up from previous expectations of at least £40m.
- It is also set to acquire two US robotics companies for $287m (£222m).
Ocado (OCDO) continues to be a big winner from the Covid-19-driven shift to online grocery shopping. As consumers migrate online “in record numbers”, the retail and technology group has bumped up its full-year profit expectations – it now forecasts that cash profits (Ebitda) for the year to 1 December will top £60m, up from previous guidance of “over £40m”. This would be around a two-fifths increase from 2019.
The improved outlook comes after a strong performance from Ocado Retail, its 50:50 joint venture with Marks and Spencer (MKS). Having dumped its long-term grocery partner Waitrose, the £1.5bn tie-up with M&S saw sales jump by more than 50 per cent in the third quarter to £587m. While no specific figures were given for the fourth quarter, sales are said to be “in line with the trends reported in the third quarter”. Broker Shore Capital estimates that they are up 40 per cent year on year.