OCADO GROUP
PLC
19 September 2024
Ocado Retail Q3 Trading
Statement
Raising FY24 revenue guidance
following continued strong growth; seven consecutive months as the
UK's fastest growing grocer1
Ocado
Retail Ltd ("Ocado"), a joint venture between Ocado Group plc
("Ocado Group") and Marks & Spencer Group plc ("M&S"),
today announces its trading statement for the 13 weeks to 1st
September 2024
Highlights
● Q3 Retail
revenue grew by 15.5% to £658m. The continued momentum demonstrates
the progress made across our strategy of unbeatable choice,
unrivalled service and reassuringly good value.
● Volumes
(total items) grew 15.4% year-on-year and average orders per week
grew by 14.7% to 437k. This was driven by growth in active
customers of 10.3% year-on-year to 1.06m as well as improved
frequency year-on-year as slot availability and our overall
proposition improved.
● Average
selling price decreased by (0.4)%, versus UK grocery inflation of
2.0%2 driven by continued investment in price, driving
further improvements in value perception. Average basket value was
broadly flat at £120.97, as basket size (number of items) was
slightly up year-on-year.
● Raising our
FY24 Revenue guidance for Ocado Retail to low double digit % growth
(previously mid-high single digits % growth). All other aspects of
Ocado Group guidance are unchanged.
Key
financial drivers
|
|
13 weeks
Q3 2024
|
13 weeks
Q3 2023
|
Year-on-year change
(%)9
|
|
Retail revenue (£
million)3
|
658.0
|
569.6
|
15.5
|
|
Volumes - total items
(million)4
|
249.9
|
216.5
|
15.4
|
|
Average orders per week
(000s)5
|
437
|
381
|
14.7
|
|
Active customers
(000s)6
|
1,060
|
961
|
10.3
|
|
Average basket value
(£)7
|
120.97
|
120.72
|
0.2
|
|
Average selling price
(£)8
|
2.75
|
2.76
|
(0.4)
|
|
Average basket size
(items)
|
44.0
|
43.7
|
0.7
|
Hannah Gibson, Ocado Retail's Chief Executive Officer,
said:
"Our strategy remains focused on giving our customers
unbeatable choice, unrivalled service and reassuringly good value.
We're seeing the momentum of this, with more customers shopping
with us more often, getting even better service at better
value.
We
know what our customers love, and we're focused on our proposition
every day. This includes our widest ever choice including more
M&S food, more convenience with better availability of delivery
slots and products, further improving our high perfect order rate
and better value for money through our Ocado Price Promise and our
latest Big Price Drop.
We're pleased with the progress we're making and excited about
how much more there is to deliver."
FY24
Guidance
Due to the strong performance in the
first three quarters of the year, we are upgrading our full year
revenue guidance. There is no change to the EBITDA margin guidance
issued on 16 July 2024 with the Ocado Group FY24 Half Year
results.
Revenue: Low double digit %
growth (previously mid-high single digit % growth)
EBITDA: FY24 adjusted EBITDA
margin of c.2.5% excluding annual Hatfield fees of £33m
Ocado
Group, on behalf of the joint-venture, will be hosting an analyst
conference call at 8.00am today. Please use participant number: +44 (0) 33 0551 0200 and
confirmation code: Ocado Q3 - Analyst Call. A replay facility will
be available through an on demand link for 90 days following the
announcement.
Contacts
● Stephen
Daintith, Chief Financial Officer on +44 1707 228 000
● Nick
Coulter, Head of Investor Relations, on +44 1707 228 000
● Fraser
Ramzan, Head of Investor Relations, Marks and Spencer Group plc, on
+44 20 3884 7080
● Oliver
Hughes at MHP on +44 20 3128 8100 or ocado@mhpgroup.com
About
Ocado Retail
Online supermarket Ocado.com was
established in 2000 and is one of Britain's leading online
retailers, now a 50:50 joint venture between Ocado Group plc and
Marks & Spencer Group plc. Covering geographies comprising over
82% of UK households, every shopping bag is carefully packed in one
of seven distribution centres using market leading software and
technology. Shopping is then delivered directly to customers using
a network of regional spokes in brightly-coloured vans. With
award-winning mobile apps, Ocado Retail delivers a wide range of
products, including big-name brands, a range of quality M&S and
Ocado own brand products and a non-food selection. Thoughtful
service features such as colour-coded bags, digital receipts
provided in date order, reminder texts with your driver's name,
along with convenient hourly delivery slots complementing
award-winning customer service on email, phone and social
media.
Notes
1.
Kantar
2. NielsenIQ
Panel On Demand Homescan from Nielsen Consumer LLC.
3. Retail
revenue comprises revenues from Ocado.com and Zoom by
Ocado
4. Volumes -
total items refers to results of Ocado.com
5. Average
orders per week refers to results of Ocado.com
6. Active
customers are classified as active if they have shopped at
Ocado.com within the previous 12 weeks
7. Average
basket value refers to results of Ocado.com
8. Average
selling price refers to Ocado.com and is defined as product sales
divided by total eaches
9. Growth
percentage calculated on a rounded basis
A copy of this trading update is
available on www.ocadogroup.com
Cautionary statement
Certain statements made in this
announcement are forward-looking statements. Such statements are
based on current expectations and assumptions and are subject to a
number of risks and uncertainties that could cause actual events or
results to differ materially from any expected future events or
results expressed or implied in these forward-looking statements.
Persons receiving this announcement should not place undue reliance
on forward-looking statements. Unless otherwise required by
applicable law, regulation or accounting standard, Ocado does not
undertake to update or revise any forward-looking statements,
whether as a result of new information, future developments or
otherwise.