Ocado raises revenue forecast: Digitalization pays off

The online retailer Ocado has raised its revenue forecast for the year to double-digit percentage growth after seeing a significant rise in customer numbers over the summer months. The company's revenue increased by 15.5% year-on-year to £658 million for the quarter ending September 1, while the average number of orders per week rose by 14.7% to 437,000. The average sales price fell by 0.4% across the group, compared to approximately 2% food inflation in the United Kingdom. However, thanks to a joint venture with Marks & Spencer, Ocado was able to attract more customers, with 1.06 million people shopping at the retailer during this period, compared to 961,000 in the same period last year. Hannah Gibson, CEO of Ocado Retail, emphasized, "Our strategy remains focused on providing our customers with an unbeatable range, unmatched service, and good value for money." "We are seeing momentum from this, as more customers shop with us more frequently, receiving better service at better prices." While revenue has increased compared to the third quarter of the previous year, this also marks an acceleration compared to the first half's growth of 11% as orders and volumes have risen. Analysts at Bernstein described the revenue growth in a statement on Thursday as a "strong performance" by the retailer. The growth also exceeds recent market data from Kantar, which implied a growth of 12.9% for the summer months. According to Kantar, Ocado's growth is still above the broader online grocery market, whose revenue has risen by 4.4% year-on-year. In July, Ocado stated that its losses in the first half of the year had nearly halved, despite better-than-expected revenue from its robotic warehousing. The group reported a pre-tax loss of £154 million for the six months to June 2, compared to losses of £290 million in the previous year.