Ocado’s revenue jumps 52% as demand for online grocery stays strong in Q3
- Ocado’s revenue jumps 52% as demand for online grocery stays strong in Q3.
- The online grocer reports £587.3 million of revenue in the fiscal third quarter.
- The British company forecasts £40 million of annual underlying profit.
Ocado Group plc (LON: OCDO) posted hawkish revenue from Ocado Retail in the fiscal third quarter on Tuesday. The company said that demand for online grocery was robust in the recent quarter due to the Coronavirus pandemic that has so far infected more than 370 thousand people in the United Kingdom and caused over 41 thousand deaths.
In separate news from the U.S., the online retail giant, Amazon said that it will hire another 100 thousand workers in the U.S. and Canada as demand for e-commerce remains strong.
Ocado reports £587.3 million of revenue in Q3
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At £587.3 million, the online grocer said that revenue from Ocado Retail saw a 52% year over year increase in the thirteen weeks that concluded on 31st August. According to the British company:
“Orders per week have increased thanks to a combination of strong demand, a phased reopening of the website to new customers, and a normalising of shopping patterns.”
Ocado Retail is a joint venture that is partly owned by Ocado Group plc. Marks & Spencer Group plc now owns the other half of the online grocer after it replaced Waitrose on 1st September. As per Ocado:
“The weighting of Marks & Spencer products in the average Ocado basket is higher than Waitrose prior to the switchover, reflecting positive customer reaction to the addition of Marks & Spencer to the range.”
Initially, M&S replaced 4,000 food products from Waitrose with 4,400 of its own. The newly introduced M&S products were priced either the same as Waitrose or lower. Ocado also included a variety of around 700 M&S home and lifestyle products.
Ocado forecasts £40 million of annual underlying profit
The Hatfield-based company also highlighted on Tuesday that it now forecasts a minimum of £40 million in underlying profit (EBITDA) in the current fiscal year.
In related news, Ocado named Stephen Daintith as its new Chief Financial Officer in August. Daintith has previously served at Rolls-Royce in a similar capacity.
Shares of the company jumped about 5% on market open to hit an intraday high of £25 per share. Ocado Group plc is now roughly 100% up year to date in the stock market. Confused about choosing a stockbroker to trade online? Here’s a list of a top few to make selection easier for you.
At the time of writing, the British online supermarket chain has a market cap of £18.54 billion.