Online grocer hails growth in customer numbers and average spend as it announces pre-tax loss of £3.8m
The online grocer Ocado has insisted it is making progress despite remaining in the red in the first half of the year.
The retailer said growth in customer numbers and average basket values, as well as its 25-year deal with the supermarket chain Morrisons, were signs that it was well-placed to benefit from the growth in the online grocery market.
It made a pre-tax loss of £3.8m in the 24 weeks to 19 May, however, which was bigger than analysts were expecting and compared with a £0.2m pre-tax profit in the same period last year.
Ocado said the loss was driven by advisory costs associated with the Morrisons deal, which is subject to shareholder approval, as well as pre-opening costs of new distribution centres.
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| Ocado has yet to report an annual pre-tax profitRevenue rose 15.6% to £355.9m, while customer numbers increased to 360,000 from 337,000 at the end of the first half last year. Average spend rose to £114.90 from £113.10. |
Tim Steiner, the chief executive, said Ocado was gaining market share. He said: "We believe we remain well positioned to benefit from this continuing growth in online demand with increased optionality and flexibility in how we drive growth and profitability in our business in the future."
He added that the company, which includes Waitrose products in its range, was focused on delivering the agreement with Morrisons, rather than "making a quick announcement about another transaction".
"While we believe that the economic and consumer environment remains challenging, we continue to see that consumers are increasingly looking to shop online for groceries, evidenced by the online growth figures reported across the grocery industry. We expect to continue growing broadly in line with the market," Steiner said.
Ocado appointed Sir Stuart Rose as chairman in May.
Analysts at Exane BNP Paribas said Ocado still had a lot of work to do: "Having signed its first partner, Ocado has made a sizeable step towards being a profitable business but the group still has plenty left to do, not least show its latest technology can work as the group expects and that it can get Morrisons online relatively painlessly."
Article Source : http://www.guardian.co.uk
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