Ocado Group plc

Ocado reported group revenue up 1% excluding closure-fee receipts, with Technology Solutions like-for-like revenue up 5% and Ocado Logistics revenue up 8%. Group adjusted EBITDA was GBP 81 million in the half, down GBP 11 million, while underlying cash flow was GBP 147 million lower at GBP 147 million and liquidity was just over GBP 1 billion, including over GBP 700 million of cash and a GBP 300 million undrawn revolver. Ocado Retail revenue rose 15%, gross profit rose 17%, EBITDA increased from GBP 33 million to GBP 73 million, and adjusted EBT was GBP 12 million; management also said Ocado Retail’s average selling price rose 2% versus UK grocery inflation of 3.9%. For guidance, management reaffirmed that it expects cash flow positive in the second half of FY26 and full-year cash flow positive in FY27, with Technology Solutions EBITDA margin at least 30% in FY26; for FY27, it guided to Technology Solutions revenue of around GBP 500 million, Ocado Logistics EBITDA of GBP 30 million to GBP 35 million, underlying cash outflow of around GBP 200 million, and CapEx of around GBP 250 million.

Adam Warby emphasized that the succession planning announcement was meant to remove uncertainty so the company can focus on execution. He said the business is now simpler and more efficient after organizational changes, and that Ocado is seeing commercial momentum from a reinvigorated sales focus, new partnerships, and the end of exclusivity in many markets. His tone was measured and upbeat, centered on delivering for shareholders and partners rather than on headline distractions.

Stephen Daintith said the half-year numbers were impacted by the accounting treatment of Kroger and Sobeys closure receipts, but underlying performance still showed 1% group revenue growth excluding those items and GBP 81 million of adjusted EBITDA. He highlighted GBP 150 million of annualized cost savings, mostly expected to show up in the second half, and said the company remains on track for cash flow positive in the second half of FY26 and full-year cash flow positive in FY27. He also noted cash and cash equivalents of GBP 765 million, gross debt of GBP 1.438 billion, and said the company could reduce gross debt to around GBP 700 million to GBP 800 million over the next 12 to 18 months if it chose to deploy cash that way.

Analysts pressed management on store-based automation, asking whether Ocado has a live pilot, whether the smaller-format solution has solved issues such as SKU depth and replenishment, and how far along the Korean and Japanese CFC delays are. Tim Steiner said Ocado has prototype and test sites plus a Dallas demo site, expects a pilot live within 12 months, and believes the solution can fit standard store formats without raising the roof while avoiding the failures other systems ran into. On delays, he said Busan is opening imminently, Seoul is taking longer because the partner wants more evidence first, and Tokyo’s timing has shifted because the partner prefers to grow existing sites more before opening another.