Online supermarket Ocado Retail has reported strong revenue growth and improved profitability in its latest financial results.
The business, a joint venture between Ocado Group and Marks & Spencer, filed its Annual Report and Financial Statements for an elongated 70-week period ending 6 April 2025.
The extension moves Ocado Retail’s financial year-end from November to April to align with M&S’ reporting calendar. From April, its results are consolidated into those of M&S, though the economic interest of both shareholders remains unchanged.
-
Related Story
-
For the financial year to 6 April 2025 (FY25), Ocado Retail delivered revenue growth of 15.5%, underpinned by a 14.6% increase in active customers to 1.2 million.
Growth was driven by higher order volumes, with average basket size holding steady and selling prices rising by just 0.4%, well below inflation. Sales of M&S-branded products were a particular highlight, climbing 21% during the year.
Ocado Retail’s focus on cost discipline and operational efficiency delivered a sharp improvement in financial performance. Adjusted EBITDA rose 78.3% year-on-year to £53.5m, while pre-tax losses were reduced from £121.7m to £60m, a £61.7m improvement.
The company also returned to cash-flow generation, ending the period with £68.2m in cash and equivalents, down from £76.4m the previous year but still supporting further investment.
The business credited progress to its Perfect Execution strategy, built around three pillars: unbeatable choice, unrivalled service and reassuringly good value.
Ocado Retail operates seven highly automated customer fulfilment centres across the UK, supported by regional spokes and a fleet of branded delivery vans that reach over 80% of UK households.
As the home of M&S Food online, it now offers more than 45,000 products, spanning M&S ranges, major brands, challenger labels and Ocado’s own lines.
Click here to sign up to Retail Gazette‘s free daily email newsletter
