Company Reports

Ocado Group offers exposure to the international e-grocery market. It began as a pure-play e-grocer in the UK and was the first mover in end-to-end automated fulfillment in groceries. In 2015, Ocado saw the opportunity to monetize its fulfillment solutions and began selling the Ocado Smart Platform to other grocers. In 2019, Ocado sold 50% of its e-grocery business, Ocado Retail, to Marks & Spencer. Ocado operates under two segments: solutions, encompassing the Ocado Smart Platform, and logistics, which operates in the UK. Ocado is in the early stages of deploying its technology beyond the e-grocery vertical.

Ocado’s first-half fiscal results included revenue growth of 1% and an adjusted EBITDA decline of 11%, both excluding Kroger and Sobeys closure impacts. Shares fell nearly 20% intraday on July 16.

Ocado Group offers exposure to the international e-grocery market. It began as a pure-play e-grocer in the UK and was the first mover in end-to-end automated fulfillment in groceries. In 2015, Ocado saw the opportunity to monetize its fulfillment solutions and began selling the Ocado Smart Platform to other grocers. In 2019, Ocado sold 50% of its e-grocery business, Ocado Retail, to Marks & Spencer. Ocado operates under two segments: solutions, encompassing the Ocado Smart Platform, and logistics, which operates in the United Kingdom. Ocado is in the early stages of deploying its technology beyond the e-grocery vertical.

Ocado’s full-year 2025 results included year-over-year top-line growth of 12%, with technology revenue up 13% and logistics revenue up 12%. Adjusted EBITDA margin was 25%, up from 16%. Shares fell around 6% at the market open on Feb. 26.

Ocado Group offers exposure to the international e-grocery market. It began as a pure-play e-grocer in the UK and was the first mover in end-to-end automated fulfillment in groceries. In 2015, Ocado saw the opportunity to monetize its fulfillment solutions and began selling the Ocado Smart Platform to other grocers. In 2019, Ocado sold 50% of its e-grocery business, Ocado Retail, to Marks & Spencer. Ocado operates under two segments: solutions, encompassing the Ocado Smart Platform, and logistics, which operates in the United Kingdom. Ocado is in the early stages of deploying its technology beyond the e-grocery vertical.

Ocado Group offers exposure to the international e-grocery market. It began as a pure-play e-grocer in the UK and was the first mover in end-to-end automated fulfillment in groceries. In 2015, Ocado saw the opportunity to monetize its fulfillment solutions and began selling the Ocado Smart Platform to other grocers. In 2019, Ocado sold 50% of its e-grocery business, Ocado Retail, to Marks & Spencer. Ocado operates under two segments: solutions, encompassing the Ocado Smart Platform, and logistics, which operates in the United Kingdom. Ocado is in the early stages of deploying its technology beyond the e-grocery vertical.

Ocado Group’s largest partner, US grocer Kroger, announced that it would shut down three customer fulfillment centers in January 2026. Ocado expects to receive $250 million in compensation. The site closures will hit Ocado’s fiscal 2026 fee revenue by $50 million.

Ocado Group offers exposure to the international e-grocery market. It began as a pure-play e-grocer in the UK and was the first mover in end-to-end automated fulfillment in groceries. In 2015, Ocado saw the opportunity to monetize its fulfillment solutions and began selling the Ocado Smart Platform to other grocers. In 2019, Ocado sold 50% of its e-grocery business, Ocado Retail, to Marks & Spencer. Ocado operates under two segments: solutions, encompassing the Ocado Smart Platform, and logistics, which operates in the United Kingdom. Ocado is in the early stages of deploying its technology beyond the e-grocery vertical.

Ocado Group offers exposure to the international e-grocery market. It began as a pure-play e-grocer in the UK and was the first mover in end-to-end automated fulfillment in groceries. In 2015, Ocado saw the opportunity to monetize its fulfillment solutions and began selling the Ocado Smart Platform to other grocers. In 2019, Ocado sold 50% of its e-grocery business, Ocado Retail, to Marks & Spencer. Ocado operates under two segments: solutions, encompassing the Ocado Smart Platform, and logistics, which operates in the United Kingdom. Ocado plans to deploy its technology beyond the e-grocery vertical.

Ocado Group reported its results for the first half of fiscal 2025, with year-over-year revenue growth of 13% and an adjusted EBITDA improvement of GBP 40 million, ahead of consensus. Following the announcement, shares rose approximately 14%.

We’re transferring coverage of Ocado, an international provider of automated fulfillment solutions for online grocers.

Ocado Group offers exposure to the international e-grocery market. It began as a pure-play e-grocer in the UK and was the first mover in end-to-end automated fulfillment in groceries. In 2015, Ocado saw the opportunity to monetize its fulfillment solutions and began selling the Ocado Smart Platform to other grocers. In 2019, Ocado sold 50% of its e-grocery business, Ocado Retail, to Marks & Spencer. Ocado operates under two segments: solutions, encompassing the Ocado Smart Platform, and logistics, which operates in the United Kingdom. Ocado plans to deploy its technology beyond the e-grocery vertical.

No-moat Ocado reported consolidated results for the 52-week period ended Dec. 1, reaching GBP 3.156 billion in revenue, representing 14% year-over-year growth. Adjusted EBITDA reached GBP 153 million, ahead of company-compiled consensus. However, despite solid operating results, the stock plunged 17% at market opening on Feb. 27 due to a slower-than-expected growth pace for automated warehouses under its technology solutions division. Ocado still expects to open at least seven new customer fulfillment centers, or CFCs, in the next three years and projects the division to contribute around 10% revenue growth in fiscal 2025. With our long-term estimates unchanged, we maintain our fair value estimate of GBX 920.

We maintain our GBX 920 per share fair value estimate for no-moat Ocado Retail after the firm's trading statement for the 13 weeks to Dec. 1, 2024 was in line with our expectations. Even with shares up following the announcement, the stock continues to trade in 5-star territory. We continue to hold our view that Ocado Retail is well-positioned to capture share as online grocery penetration increases.

Ocado Group offers exposure in one of retail's largest and most dynamic segments: global online food retailing. We think that the Ocado Smart Platform is well positioned to become one of the most sought-after online grocery fulfillment solutions for big brick-and-mortar grocers predominantly in developed markets as online penetration advances.

Ocado Retail, a joint venture between Ocado Group and Marks & Spencer, reported its third-quarter trading update, showing strong performance with retail revenue up 15.5% year on year to GBP 658 million. Volume growth (total items) increased by 15.4%, while average orders per week rose 14.7% to 437,000. The number of active customers grew by 10.3% to 1.06 million, indicating that more customers are shopping with Ocado more frequently due to improved service offerings and better value perception.

No-moat Ocado Group reported half-year results, with revenue up 12.6% and group adjusted EBITDA of GBP 71.2 million ahead of expectations. Ocado Retail's performance (revenue up 11%) was driven by customer growth of 8.1% to 1,037,000, growth in average orders per week of 9.2% to 428,000, and the average basket value increasing 1.8%, in turn due to 1.5% higher average selling price, with basket sizes remaining stable (44.7 items). Profitability was EBITDA-positive at GBP 20.7 million, with progress expected, driven by efficiencies and operational leverage, toward a mid-single-digit EBITDA margin in the midterm (5% in our model by fiscal 2025).

Ocado Retail, a joint venture between Ocado Group and Marks & Spencer, reported a first-quarter trading update for the 13 weeks to March 3, 2024, with retail revenue up 10.6%, including volume growth up 8.1% and the average sales price, or ASP, up 2.2%. The ASP was lower than market inflation, reflecting the online grocer's efforts toward value perception. Ocado Retail's good performance was driven by: 1) customer growth of 6.4% to 1,018,000, 2) growth in average orders per week of 8.4% to 414,000, and 3) the average basket value increased by 2.1%—in turn due to the higher ASP (lower than inflation) with a slightly lower basket size at 45 items per order (down 0.2%). The company maintained 2024 guidance: it expects Ocado Retail to grow at a high-single-digit rate versus 8% in our model and EBITDA margin to be around 2.5%.

Ocado Group reported fiscal 2023 results, with group revenue up 9.9% and group EBITDA of GBP 51.6 million broadly in line with expectations. Ocado Retail's good performance (revenue up 7%) was driven by: 1) good customer growth of 5.9% to 998,000; 2) growth in average orders per week of 4% to 393,000; and 3) the average basket value increasing 2.7%—in turn due to 7.9% higher average selling price, offset by smaller basket sizes (down 4.5% to 44 items). Segment profitability was EBITDA-positive at GBP 10 million with progress expected driven by efficiencies and operational leverage toward a mid-single-digit EBITDA margin in the midterm (5% in our model by fiscal 2025).

Ocado Group offers exposure in one of retail's largest and most dynamic segments: global online food retailing. We think that the Ocado Smart Platform is well positioned to become one of the most sought-after online grocery fulfillment solutions for big brick-and-mortar grocers predominantly in developed markets as online penetration advances.