Ocado posts 5.7% growth in half year report


Half-year results posted by Ocado today have shown that the etailer‘s profits have grown by 5.7 per cent in the six months to May 15.

According to Reuters, the online grocer today made earnings before interest, tax, depreciation and amortisation (EBITDA) of £40.4 million in that timeframe.

In the same period last year, it reported £38.2 million in EBITDA.

Ocado‘s shares dipped to a three-year low earlier this month after Amazon entered the online grocer market with AmazonFresh.

It entered the fray after a deal was confirmed in February with Morrisons, which agreed to provide wholesale food products despite already having a distribution agreement with Ocado.

Ocado, whose range also includes products supplied by Waitrose, said the UK grocery market remained competitive with ongoing price deflation.

“We are pleased with the steady progress in our business, maintaining double-digit sales growth in a retail environment that remains challenging,” chief executive Tim Steiner said.

“Notwithstanding the tough nature of the marketplace, we expect to continue growing ahead of the online grocery market.”

The etailer was expected to announce a new international partner in its last full year report, but it is understood that this was in negotiation stages.