Ocado Group (OCDO) Q3 2024 TU earnings summary

Executive summary

• Q3 retail revenue grew 15.5% year-over-year to £658 million, driven by strong volume and customer growth, marking seven consecutive months as the UK's fastest growing grocer.

• Active customers increased 10.3% to 1.06 million, with average weekly orders up 14.7% to 437,000.

• Customer satisfaction improved by seven percentage points year-over-year, maintaining the highest NPS in the industry.

• Growth attributed to expanded product range, improved service, and continued price investment.

• Average basket value remained stable at £120.97, while average selling price decreased by 0.4% despite 2.0% UK grocery inflation.

Financial highlights

• Retail revenue for Q3 2024 was £658 million, up from £569.6 million in Q3 2023.

• Volumes (total items) grew 15.4% year-over-year to 249.9 million.

• Average basket size increased slightly to 44.0 items.

• Ocado has been the fastest growing grocer over the last seven months, gaining market share.

• Average selling price growth lagged behind UK grocery inflation, reflecting price investment.

Outlook and guidance

• Upgraded full-year 2024 revenue guidance to low double-digit percentage growth from previous mid-high single-digit guidance.

• EBITDA margin guidance maintained for the full year; further updates expected in January.