Ocado Group (OCDO) H1 2025 earnings summary

Executive summary

• Group revenue rose 13% year-over-year to £674m, with strong growth in Technology Solutions and Logistics, and adjusted EBITDA up £40m to £92m, driven by disciplined execution and cost control.

• Ocado Retail was deconsolidated in April 2025, now equity accounted, resulting in a non-cash gain of £783m and a statutory profit of £611.8m.

• Focus remains on achieving cash flow positivity in FY26 and full-year positive cash flow in FY27, supported by lean operations and capital allocation.

• Significant international expansion with launches in South Korea, Saudi Arabia, Spain, and Australia, and strong engagement with partners like Kroger and Coles.

• Strategic priorities include evolving the commercial strategy and leveraging new opportunities as exclusivity terms roll off.

Financial highlights

• Group revenue up 13% year-over-year to £674m; Technology Solutions up 15%, Logistics up 12%.

• Adjusted EBITDA increased to £92m (+£40m YoY), with Technology Solutions EBITDA at £73m and margin at 26% (22% excluding one-off fees).

• Underlying cash outflow improved by £93m to £108m; liquidity at end-June near £1.2bn, including £866m cash and a £300m undrawn revolving credit facility.

• Ocado Retail revenue up 16% to £1,526m, adjusted EBITDA up £12m to £33m, with underlying margin at 3.3%.

• Reported a £783m non-cash gain from the deconsolidation of Ocado Retail.

Outlook and guidance

• FY25 guidance reaffirmed: Technology Solutions revenue growth c.10%, Logistics high mid-single digit growth, and group adjusted EBITDA margin 20–25%.

• Group underlying cash outflow expected at c.£200m for FY25; on track to achieve cash flow positivity in FY26 and full-year positive in FY27.

• Capital expenditure for FY25 expected around £300m.

• Focused on reducing fixed costs, especially in technology and support, to support cash flow targets.

• c.8 new CFCs to go live over next 3 years; c.150 live modules expected by end FY27.