Leap in figures marred by adverse weather for Ocado
Ocado has reported a jump in revenue during the three months to the start of March, but said that adverse weather conditions then dented its financial performance. The online grocer said that revenue had hit £363.4m during the 13 weeks to 4 March, up 11.7 per cent over the equivalent period a year earlier, while average orders per week also increased by just over 11 per cent, to around 280,000.
The average order size edged marginally lower, to £110.45 from £110.85, but chief executive Tim Steiner struck an optimistic note, saying that underlying sales growth across the retail business was in line with guidance for the full year. He said that winter storms during the final week of the reporting period had caused “widespread disruption” – equivalent to nearly 1 per cent of sales over the quarter – but that staff had nonetheless succeeded in delivering order “often in the most trying conditions”.
Mr Steiner said that Ocado continues to make good progress in ramping up a major fulfilment centre in
Andover and is preparing to open another in Erith south-east London later this year.
“Taking advantage of the opportunities ahead of us is both challenging and exhilarating,” he said. “The business is firmly looking forward."
Ocado has enjoyed a strong share-price performance over the past year, with shares more than doubling in value since last March.
Nonetheless, the group has struggled to cling onto its share of the competitive UK grocery market, especially in the face of fierce competition from discount retailers like Aldi and Lidl. Late last month it had a 1.2 per cent share of the market according to analytics firm Kantar Worldpanel, down from around 1.6 per cent from the start of last year. Last month it also warned that annual earnings would be lower than previously anticipated.