Ocado Group Plc Revenue Rises 17%


The shares of Ocado (LSE: OCDO) fell 20p to 501p this afternoon after the online grocery firm today announced its full-year results.

The FTSE 250 member reported revenues up 17% to £792m and earnings before interest, taxes, depreciation and amortisation up 33% to £46m.

The statement also showed a £5m loss before exceptional items. Performance levels improved, with 95.2% of orders being delivered on time or early.

In addition, the food delivery service boasted 385,000 active customers and an average order size of £113.53.  

Tim Steiner, Ocado’s chief executive, said:

“Last year the food retail market in the UK was driven by consumers’ increasing preference for shopping online. Today the momentum seems unstoppable and, as the market evolves, we are leading the way in delivering market-leading service, innovation, and technology to the benefit of our customers.

“2013 was an extremely busy year for us with significant progress in growing both our customer numbers and average spend thanks to a wider range of products, even better prices, and the fact that we are now even easier to shop. We have continued to grow our general merchandise business, adding depth to the range in certain non-food categories and launching Fetch, our specialist online pet store.

Mr Steiner added that technological developments reflected “the increasing demand for online grocery shopping in the UK”.

Accompanying the financial results, Jason Gissing, co-founder of Ocado, announced he would retire from the executive board in May.

Of course, whether today's full-year results as well as the wider prospects for the food sector both combine to make Ocado a 'buy' right now is something only you can decide.

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> Douglas does not own any share mentioned in this article.