// Ocado sales drop following an investment in technology
// Sales at the retail division – a joint venture with Marks & Spencer – rose 4.6% to £2.3bn
Ocado has recorded a drop in its full-year earnings following an investment in technology.
The online grocer reported a group EBITDA of £61 million, compared to £73.1 million in the previous year.
Group sales rose 7.2% to £2.5 billion in the period to November 28, 2021, while sales at the retail division – a joint venture with Marks & Spencer – rose 4.6% to £2.3 billion and were ahead 41.5% on a two-year basis.
READ MORE: Ocado and Asda plan driverless deliveries with Branson-backed start-up
Distribution and administrative costs jumped 20% to £976.7 million as Ocado spent on technology to supply its retailer customers and expanded support functions.
“The past year has further reinforced that demand for online grocery is here to stay,” Ocado chief executive, Tim Steiner said.
“In the majority of mature markets, the fastest growing channel is online and to truly win here food retailers need to deliver the best offer with the best economics across all customer missions.
“The new generation of Ocado technology, which we have called “Ocado Re: Imagined”, represents a transformational leap forward allowing our partners to comprehensively out-compete peers online.”
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