Ocado Group (OCDO) H2 2024 earnings summary

Executive summary

• Achieved 14% year-over-year revenue growth to £3.2 billion, with adjusted EBITDA rising by £102 million to £153 million, driven by all segments and cost control.

• Underlying cash flow improved by £249 million year-over-year, with positive cash flow in 2H24 and liquidity exceeding £1 billion.

• Leadership transition with a new chair and continued focus on accelerating growth, efficiency, and partner benefits.

• Ocado Retail joint venture to be deconsolidated in early April, with no change to economic interest.

• Group is on track to turn cash flow positive during FY26.

Financial highlights

• Group revenue reached £3.2 billion, up 14% year-over-year.

• Technology Solutions revenue up 18% to £496 million; EBITDA up £66 million to £81 million (16% margin).

• Logistics revenue up 8% to £718 million; adjusted EBITDA stable at £31 million.

• Retail revenue up 14% to £2,686 million; EBITDA up £34 million to £45 million, with underlying margin of 2.9%.

• Depreciation and amortization peaked at £460 million, expected to flatten and decline.

Outlook and guidance

• Targeting 150 live modules by fiscal 2027, up from 123 at year-end 2024.

• Technology Solutions expected to grow revenue by 10% in 2025, with 20%-25% EBITDA margin.

• CapEx guidance for 2025 is £300 million, with £130 million for CFCs and £170 million for tech R&D.

• Underlying cash outflow of ~£200 million expected in 2025, with positive free cash flow targeted for 2026.

• R&D spend to be managed at 20% of recurring revenue by 2027.