Ocado share price steady even as FY losses widen

Shares in Ocado (LON:OCDO) have climbed higher in London this morning even as the company posted a loss for the full year. The group’s chief executive meanwhile declined to comment on reports that the online grocer was in talks with Marks & Spencer (LON:MKS) about a possible food delivery deal.

AS of 09:51 GMT, Ocado’s share price had added 1.20 percent to 1,004.50p. The shares are marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 1.11 percent higher at 7,112.12 points.

Ocado posts FY results

Ocado announced in a statement this morning that its retail revenue had climbed 12 percent to £1.48 billion last year. The group’s EBITDA, however, fell by a little over a fifth to £59.3 million. Ocado’s loss after tax further widened to £44.9 million from £9.8 million in the prior-year period as the company invested in its platform.

"Our transformation journey is well under way with increased cash fees earned and greater investment,” the group’s chief executive Tim Steiner said in the statement, adding that “creating future value now will involve us continuing to scale the business, enhancing our platform”.

City A.M. quoted Laith Khalaf, senior analyst at Hargreaves Lansdown, as commenting that Ocado’s “recent losses won’t bother the robots in the warehouses, nor the executives in the boardroom,” adding that the online grocer is not “expected to turn a profit until 2020”.

No update on M&S deal

Reuters reported today that Tim Steiner had declined to comment on media reports that Ocado is in talks with Marks & Spencer regarding a possible tie-up.

“We’re in the business of talking to retailers, we’re constantly talking to different retailers all around the world about opportunities we may have with them,” he told reporters. “We won’t comment on who we’re talking to and who we’re not talking to.”

As of 10:10 GMT, Tuesday, 05 February, Ocado Group PLC share price is 1,004.50p.