Ocado’s retail revenue climbs to £579.6 million in the fiscal fourth quarter

In a report on Thursday, Ocado Group plc (LON: OCDO) said that its retail revenue in the fiscal fourth quarter came in significantly better than last year. The company attributed its hawkish performance to the ongoing Coronavirus pandemic that fuelled demand for online grocery in recent months.

Ocado Group plc opened about 4% down on Thursday. At £22.19 per share, it is now roughly 80% up year to date in the stock market after recovering from a low of £10.64 per share in March when the impact of the pandemic was at its peak. If you are interested in investing in the stock market, you will need a reliable stockbroker – here’s a comparison of the top few to make selection easier for you.

Ocado raises its guidance for full-year EBITDA

The COVID-19 crisis has so far infected more than 1.7 million people in the United Kingdom and caused over 62 thousand deaths. On the back of robust performance in Q4, Ocado also raised its guidance for annual EBITDA (earnings before interest, taxes, depreciation, and amortisation) on Thursday.

The online supermarket reported £579.6 million of retail revenue in the quarter that concluded on 29^th November. In comparison, its retail revenue in the same period last year was capped at a lower £429.7 million. In the prior quarter (Q3), Ocado had revealed a 52% annualised growth in its retail sales, as per the report published in September.

The British company also said on Thursday average orders per week in the recent quarter jumped to 360 thousand versus the year-ago figure of 350 thousand. In its previous guidance for full-year EBITDA, Ocado had forecast £60 million. On Thursday, it raised the guidance to over £70 million.

Ocado to acquire Kindred Systems and Haddington Dynamics

According to Ocado Group plc:

“Rates of sales and EBITDA growth in fiscal 2021 will be determined by the extent to which Ocado retail returns to a normalised trading week and the timing of when the planned additional capacity goes live.”

In an announcement last month, Ocado said it will acquire Kindred Systems and Haddington Dynamics for £222 million.

Ocado Group plc is the world’s largest dedicated online grocery retailer. It performed largely upbeat in the stock market last year with an annual gain of more than 50%. At the time of writing, the Hatfield-based company is valued at £17.25 billion.