Shares in Ocado (LON:OCDO) have climbed higher in London this morning, as the online grocer updated investors on its third-quarter performance, posting a rise in revenue. The results follow the group’s half-year update which revealed a loss before tax.
As of 08:43 BST, Ocado’s share price had added 4.14 percent to 950.40p. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index having slipped marginally into the red and currently standing 0.09 percent lower at 7,295.45 points.
Ocado posts revenue growth
Ocado announced in a statement this morning that its retail revenue had grown 11.5 percent to £348.6 million in the 13 weeks to September 2, in line with the group’s guidance for the year. The online grocer further saw a 11.4-percent rise in average orders per week to 283,000, while the average order size remained nearly flat at £106.26.
The online grocer’s chief executive Tim Steiner explained that the company had benefitted from new capacity from its robotic warehouses Andover and Erith, as well as from ‘strong initial growth’ at the Erith Customer Fulfilment Centre (CFC), which opened this summer and which, Steiner noted, at full capacity will be the largest automated warehouse for online grocery in the world.
Group upbeat going forward
“We are on track to deliver a significant number of new CFCs for our Solutions partners in the coming years and as such are fulfilling our goal of changing the way the world shops,” Ocado’s chief executive concluded.
Today’s results mark a boost for the online grocer, which disclosed over the summer that it had made a £9-million pre-tax loss in the first half of its financial year. The Times noted in its coverage of the news that Steiner has consistently said that profits do not matter, at least not for now with Ocado focusing on investing in technology and automated warehouses.