Ocado reveals £394m loss as sales improve

Ocado has posted a £394 million loss for the past year, as bosses hailed “good progress” at the online retail group.

It also revealed that Ocado Retail, its joint venture with Marks & Spencer, delivered an underlying profit after criticism from its retail partner over the operation last year.

On Thursday, the Ocado group revealed the reduced pre-tax loss for the year to December, after it was boosted by £187 million secured from a settlement with Norwegian rival AutoStore.

It came as the company reported that group revenues increased by 9.9% to £2.8 billion over the year.

Ocado Retail, our joint venture with M&S in the UK, has had significant success growing customer numbers, taking online grocery market share and rebuilding profitability

This was largely driven by the firm’s technology solutions business, which saw 44% growth to £420.5 million for the year.

Meanwhile, Ocado Retail revenues were up 7%, as it hailed “continued strong customer retention”.

Tim Steiner, chief executive, said: “I am pleased to report good progress across the group in 2023.

“Our technology is transforming the way people shop for food as we help some of the world’s best and most innovative retailers set the bar for excellence in grocery ecommerce worldwide.

“Ocado Retail, our joint venture with M&S in the UK, has had significant success growing customer numbers, taking online grocery market share and rebuilding profitability, proving, once again, the attractions of our online model.”