Ocado has returned to profitability on a group level. The British online supermarket and solutions provider reported a gross profit (EBITDA) of 16.6 million pounds for the first half of this year. According to CEO Tim Steiner, Ocado demonstrates ‘the potential for our international ambitions’.
In the first six months of last year, Ocado recorded a negative EBITDA of 13.6 million pounds. The company managed to turn the tide amid the ongoing cost-of-living crisis and rising inflation.
More turnover, less costs
Ocado increased its revenue by 9.1 percent to 1.37 billion pounds while cutting costs. CEO Steiner states: “Ocado Group has made good progress over the last six months.”
The performances of the major business segments differ from each other. Ocado Retail posted a dip of 2.5 million pounds in EBITDA in the first half of the year, while Ocado Logistics reported a gross profit of 14.6 million pounds. The Technology Solutions division contributed 5.9 million pounds.
Retail division returned to profitability
However, in the second quarter, Ocado also managed to achieve gross profitability with its retail division, which is the core of the company. “Ocado Retail is making good progress, with a return to profitability in Q2,” declared CEO Tim Steiner.
Ocado seeks to ‘transform the economics of online grocery.
He added: “Our operations in the UK remain an important demonstration of the potential for our international ambitions, as we seek to transform the economics of online grocery and expand into the wider automated storage and retrieval solutions market.”
Ocado, ranked in the top 10 online stores in the UK, can serve businesses within and outside the grocery sector worldwide with its technology solutions and intelligent automation, according to Steiner.
The company declined to comment on the alleged interest of Amazon in acquiring Ocado following the announcement of the figures. Steiner: “Speculation is speculation; I have nothing to say about it.”