In This Article:
-
Revenue: Increased by 14% to GBP3.2 billion.
-
Adjusted EBITDA: Tripled to GBP153 million, up GBP102 million.
-
Cash Flow Improvement: Improved by GBP249 million year over year.
-
Liquidity: Over GBP1 billion, including cash and revolving credit facility.
-
Depreciation and Amortization: GBP460 million.
-
Recurring Revenue for Technology Solutions: GBP460 million, representing 84% of total revenues.
-
Technology Costs: GBP93 million, flat with last year.
-
Support Costs: Reduced by GBP17 million to GBP174 million.
-
Ocado Retail Revenue Growth: 14%, with an EBITDA of GBP45 million.
-
Average Orders Per Week: Increased by 12.5%.
-
Customer Growth: Over a million customers, growing by 12%.
-
Basket Value: Stable at GBP122.
-
Capital Expenditure: Reduced due to less construction activity.
-
R&D Spend: GBP280 million in fiscal '24, with a reduction target to GBP250 million in fiscal '25.
-
Cash Balance: GBP772 million at year end.
-
Guidance for Fiscal '25: Technology solutions revenue growth of 10%, Ocado retail growth above 10%, and a cash outflow of circa GBP200 million.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Ocado Group PLC (OCDDY) reported a 14% increase in group revenue, reaching GBP3.2 billion.
-
Adjusted EBITDA tripled to GBP153 million, marking a significant improvement in profitability.
-
The company achieved a GBP249 million improvement in underlying cash flow, surpassing initial guidance.
-
Ocado Group PLC (OCDDY) maintains strong liquidity with over GBP1 billion, including cash and access to a revolving credit facility.
-
The company is making strides in technology solutions, with recurring revenues now representing 84% of total revenues for this segment.
Negative Points
-
Growth across global CFCs is behind expectations, necessitating a focus on accelerating growth and efficiency.
-
Interest costs are expected to rise due to the introduction of a high-yield bond.
-
The company faces challenges with some CFC sites requiring a different strategic approach to realize full value.
-
There is a delay in the go-live dates for some CFC sites, such as those in Phoenix and Charlotte, now expected in early fiscal '26.
-
Ocado Group PLC (OCDDY) is experiencing a slower build of modules and CFCs, impacting the anticipated inflection point in growth.
Q & A Highlights
Q: What is causing the delay in winning new contracts for Ocado Intelligent Automation (OIA), and how are tariffs affecting your operations in the US? A: Timothy Steiner, CEO, explained that while there is a strong pipeline for OIA, some projects have been delayed due to rising interest rates and economic conditions, with clients postponing projects by 12 to 24 months. Regarding tariffs, Steiner noted the complexity and variability of tariffs but mentioned that most equipment needed for US operations is already in the country, minimizing immediate concerns.