Ocado Group (LON:OCDO) Announces Earnings Results

Key Points

• Ocado said it is still on track to become cash flow positive in the second half of FY2026, with full-year cash flow positivity expected in FY2027 after cost cuts and organizational changes.
• The company reported strong operational growth, with international volumes up 27% and Ocado Retail revenue up 15%, supported by customer gains and higher order frequency.
• Ocado highlighted commercial progress including wins with Asda, a new U.S. customer, and its first South Korea CFC launch, while also noting delays to some CFC openings that do not change its longer-term guidance.

Ocado Group (LON:OCDO - Get Free Report) issued its quarterly earnings data on Thursday. The company reported GBX (3.90) earnings per share (EPS) for the quarter, Digital Look Earnings reports. Ocado Group had a return on equity of 24.47% and a net margin of 29.33%.

Here are the key takeaways from Ocado Group's conference call:

• Ocado said it remains on track to become cash flow positive in the second half of FY2026, with full-year cash flow positivity expected in FY2027 after major organizational changes and cost cuts.
• Underlying business momentum remained strong, with international volumes up 27% and Ocado Retail revenue up 15%, supported by continued customer growth and improved order frequency.
• The company highlighted several commercial wins and partner milestones, including Asda, a new U.S. customer, and the upcoming launch of its first South Korea CFC with new automation features such as Auto Freezer and dawn delivery.
• Management said the commercial pipeline has become more active and more U.S.-weighted following the end of exclusivity in key markets, and that Ocado is now selling broader solutions beyond CFCs, including store-based automation and AMRs.
• While several execution issues remain, including delays to some CFC openings and the fact that store-based automation is still in pilot/prototype stages, management said these do not change its longer-term strategy or guidance.

Ocado Group Price Performance

Shares of Ocado Group stock traded down GBX 31.50 during trading on Thursday, reaching GBX 146.20. The company's stock had a trading volume of 26,637,744 shares, compared to its average volume of 21,902,838. The stock has a 50-day moving average price of GBX 191.51 and a two-hundred day moving average price of GBX 209.17. Ocado Group has a one year low of GBX 140.30 and a one year high of GBX 397.90. The stock has a market capitalization of £1.22 billion, a P/E ratio of 3.00 and a beta of 2.39. The company has a current ratio of 2.00, a quick ratio of 2.81 and a debt-to-equity ratio of 131.70.

Wall Street Analysts Forecast Growth

Separately, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a GBX 310 price objective on shares of Ocado Group in a research note on Monday, June 1st. Two equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, Ocado Group has an average rating of "Buy" and a consensus target price of GBX 373.50.

About Ocado Group

Ocado Group is a UK based technology company that provides end-to-end online grocery fulfilment solutions, known as the Ocado Smart Platform, to some of the world's largest grocery retailers and holds a 50% share of Ocado Retail Ltd in the UK in a Joint Venture with Marks & Spencer. OSP comprises access to Ocado's physical infrastructure solutions, running highly efficient warehouse operations for the single pick of products, together with the entire end-to-end proprietary software applications required to operate a world class online grocery business.

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