Ocado shares surge after ‘strong’ half-year

Ocado hailed “strong” trading over the past half year as sales jumped on the back of progress in its technology arm and it reported rising demand from UK shoppers.

The online retail specialist also swung to a profit amid a boost from its joint venture with Marks & Spencer.

Shares in the company jumped in early trading on Thursday as investors welcomed the figures.

The London-listed firm revealed that group revenues increased by 13.2% to £674 million for the six months to June 1, compared with the same period a year earlier.

This was supported by 14.9% growth in its technology business as it benefited from further expansion and investment.

Elsewhere, the company’s third-party logistics business saw revenues rise 12.1%, largely driven by a rise in inflation.

The company’s Ocado Retail business – its 50-50 joint venture with Marks & Spencer – revealed that revenues jumped 16.3% for the half-year, outstripping the rest of the UK grocery sector.

It said the strong performance was driven by a 14.7% jump in orders to 491,000 orders per week.

Ocado added that average customer numbers grew by 13.4%, while shoppers also increased the frequency of orders.

The group also posted a pre-tax profit of £611.8 million for the half-year, rebounding from a £153.3 million loss a year earlier, as it benefited from a revaluation of its stake in the Ocado Retail business.

Tim Steiner, chief executive of Ocado, said: “Ocado Group has delivered a strong first half and we have reached important milestones both in our UK business, as well as across our international partnerships.

“Our technology solutions division has more than doubled Ebitda (earnings before interest, tax, depreciation and amortisation) and our underlying cash flow has improved significantly, ending the period with liquidity in excess of £1 billion.

“Our focus remains on turning cash flow positive during full-year 2026, supported by continued growth with our partners and cost discipline across the business.”

Ocado shares were 14.5% higher on Thursday morning.