Ocado Group (OCDO) H1 2024 earnings summary

Executive summary

• Group revenue increased by 13% year-over-year to £1.54 billion, with strong growth across Technology Solutions (up 22%) and Retail (up 11%).

• Adjusted EBITDA nearly tripled to £71.2 million, up £55 million year-over-year, reflecting improved profitability and cost discipline.

• Underlying cash outflow improved by £101 million, driven by EBITDA growth, capex reductions, and cost control.

• Three new CFCs (Sydney, Melbourne, Madrid) are set to go live in the second half of the year, with McKesson CFC on track.

• Clear trajectory to cash flow breakeven expected in the second half of 2026, with raised FY24 guidance for EBITDA and cash flow.

Financial highlights

• Group revenue reached £1,543 million in 1H24, up from £1,371 million in 1H23.

• Adjusted EBITDA increased to £71.2 million from £16.6 million, a 329% rise year-over-year.

• Loss before tax after adjusting items at £154 million, less than half of the prior year.

• Group liquidity stood at £1.05 billion at period end, including £747 million cash and £300 million undrawn RCF.

• CapEx guidance reduced to £425 million for FY24, down from previous £475 million.

Outlook and guidance

• FY24 guidance raised: underlying cash flow improvement now expected at £150 million (previously £100 million).

• Technology Solutions revenue growth forecast at 15–20% with mid-teens EBITDA margin.

• Retail revenue to grow mid-high single digits; Logistics revenue stable with high single-digit volume growth.

• On track to turn cash flow positive in the second half of 2026.

• CapEx for FY24 guided at £425 million.