Ocado Group plc

Ocado said group revenue, excluding closure-fee impacts, was up 1% in the first half; Technology Solutions revenue grew 5% like-for-like; and Ocado Logistics revenue grew 8%. Group adjusted EBITDA was GBP 81 million, down GBP 11 million year on year, and underlying cash flow was GBP 147 million, down GBP 39 million. Ocado Retail revenue rose 15%, gross profit rose 17%, and adjusted EBT was GBP 12 million; retail EBITDA increased from GBP 33 million to GBP 73 million. Management said liquidity was just over GBP 1 billion, cash and cash equivalents were GBP 765 million, and gross debt was GBP 1.438 billion. Guidance was unchanged: the group remains on track to be cash flow positive in the second half of FY26 and cash flow positive for FY27; Technology Solutions margin guidance remains at least 30% for FY26; FY27 guidance includes Technology Solutions revenue of around GBP 500 million, around a 30% EBITDA margin, Ocado Logistics EBITDA of GBP 30 million to GBP 35 million, CapEx of around GBP 250 million, and an underlying cash outflow of around GBP 200 million.

Adam Warby framed the period as one of simplification and focus after organizational changes and the succession announcement, saying the business is now better positioned to execute its strategy. He highlighted the expected return to cash flow positivity, the stronger commercial structure, and the growing opportunity from new partners and a broader solutions set. His tone was orderly and confidence-building, but he avoided adding commentary beyond strategy and execution.

Stephen Daintith focused on the numbers behind the transition to cash generation. He said adjusted EBITDA was GBP 81 million, underlying cash flow was 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; gross debt stood at GBP 1.438 billion, and the company repaid GBP 55 million of debt in the half. He tied the second-half improvement to GBP 150 million of annualized cost savings, with organizational efficiency contributing GBP 30 million to GBP 40 million, location optimization around GBP 10 million, and focused technology spend GBP 80 million to GBP 90 million. He also reiterated Technology Solutions margin guidance of at least 30% for FY26 and laid out the FY27 framework for cash flow positive and potential debt reduction.

Analysts pressed on store-based automation, asking whether Ocado had a real pilot live, whether technical and operational issues like SKU depth, replenishment, and disruption had been solved, and what was behind delays in some CFC openings. Management said it has early prototypes and a U.S. demo site, expects a pilot in the next 12 months, and believes the solution fits existing stores without needing roof raises or major disruption. On delays, Tim Steiner said the Korean Busan site is opening imminently while Seoul is later because the partner wants to see Busan results first; in Japan, he said the timetable was extended because the partner preferred to deepen utilization at existing sites before opening another. Nick de la Vega also addressed SBA economics and competition, saying prospects are moving at different speeds, competition is still nascent, and none of the discussions so far has been blocked by economics.