Ocado’s (LON:OCDO) share price has surged in London this morning even as the online grocer revealed that its losses had widened in the first half of the year. The company, however, grew its retail revenues during the reported period and flagged growth for the remainder of the year.
As of 08:52 BST, Ocado’s share price had added 6.41 percent to 1,245.50p, outperforming the broader UK market, with the benchmark FTSE 100 index having slipped into the red and currently standing 0.28 percent lower at 7,528.41 points. The group’s shares have added more than 22 percent to their value over the past year, as compared with a near two-percent fall in the Footsie.
Ocado posts interim results
Ocado announced in a statement this morning that the group’s loss before tax had widened to £142.8 million in the 26 weeks ended June 2, from £43 million a year ago. The company reported a net cost of £98.5 million relating to the Andover fire, comprising £110.3 million of costs, offset by £11.8 million of insurance proceeds recognised to date.
The online grocer, however, recorded 9.7 percent retail revenue growth, and said that it remained confident that it would achieve retail revenue growth of between 10 percent and 15 percent for the remained of the year.
“In the last six months the centre of gravity at Ocado Group has shifted. Our exciting new joint venture with M&S creates further growth opportunities for both parties in the UK and allows Ocado Group to increase focus on growing our Ocado Solutions business and innovating for our partners,” the group’s chief executive Tim Steiner commented in the statement.
Analysts on online grocer
The 13 analysts offering 12-month targets for the Ocado share price for the Financial Times have a median target of 1,000.00p, with a high estimate of 1,700.00p and a low estimate of 600.00p. As of July 5, the consensus forecast amongst 16 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.