Ocado returns to earnings growth as sales soar
Christmas trading was particularly strong, as Ocado reported record trading and hit its highest ever level of sales over the peak Christmas trading period
Ocado has returned to positive earnings in its full-year results after sales soared over the year, in part boosted by a “record” Christmas for the group.
While full-year retail revenues rose by 7% to £2.35bn, sales in the final quarter of the year soared by 10.9% to £609.4m, marking a fourth consecutive period of quarter-on-quarter growth and a “significant” increase against the 7.2% rise reported in Q3.
Christmas trading was particularly strong, as Ocado reported record trading and hit its highest ever level of sales over the peak Christmas trading period.
According to the group, it sold over 90% of peak Christmas slots by mid-October amid high demand, and between 20 and 24 December, sales rose by 7%.
In the final quarter, volumes also grew “consistently”, up 4.8% year-on-year. Despite this, Ocado.com volumes across the whole year were down 0.9% thanks to a drag in the first half due to the unwinding from the pandemic and the cost of living crisis.
Nonetheless, fourth quarter average orders per week of 407,000 grew 6.3%, and for the year grew 4.0% (393,000), reflecting an increase in active customers.
Looking ahead, Ocado said it is confident it will “continue its encouraging momentum” over the coming year, growing sales volumes ahead of the market.
Hannah Gibson, Ocado Retail’s chief executive officer, said: “We made significant progress in 2023. We have focused first and foremost on being a great shopkeeper, improving our unbeatable range, great value and unrivalled experience – all underpinned by improved cost efficiencies.
“Our Perfect Execution programme set a high bar for our performance, and we are pleased to have finished the year with strong momentum. Thank you to everyone at Ocado Retail, M&S and Ocado Group who’ve worked so hard to deliver the first year of our strategy and these encouraging results.”
She added: “We are starting the new year with over one million active customers. Over the next 12 – 18 months, we will be embedding the foundations we have laid this year and raising the bar again for online grocery shopping. We have a really strong platform to build on in 2024.”
