Ocado Group (OCDO) Q4 2024 TU earnings summary

Executive summary

• Q4 2024 retail revenue rose 17.5% year-over-year to £716 million, maintaining the fastest growth among UK grocers, driven by increased customer acquisition, higher order frequency, and improved service and value proposition.

• Full-year 2024 retail revenue increased 13.9% to £2,685.8 million, with a 12.1% rise in active customers and higher order frequency.

• Customer base grew to 1.1 million, with average orders per week up 12.5% year-over-year and basket value rising 1% to £122.09.

• NPS increased by 4.9 percentage points, maintaining the highest in the industry, supported by improved service, expanded product range, and value initiatives.

• Christmas trading set new sales records, with the network exceeding design capacity during the peak period.

Financial highlights

• Q4 volumes grew 17% year-over-year to 271.6 million items; average orders per week up 16.9% to 476,000.

• Q4 retail revenue reached £716 million; full-year revenue was £2,685.8 million.

• Ocado.com volumes grew 17% in Q4 and 12.9% for the year; average orders per week hit 500,000 at year-end.

• EBITDA improved strongly year-on-year, reflecting operational leverage and efficiency gains.

• Average basket value in Q4 was £120.85, up 0.2% year-over-year; FY 2024 average basket value rose 1% to £122.09.

Outlook and guidance

• Expects sales volumes to continue outpacing the market in FY25, with stable order frequency and ongoing customer acquisition.

• Targeting mid-high single-digit adjusted EBITDA margin in the midterm, with further operational efficiency and scale leverage.

• FY25 EBITDA guidance to be provided at full-year results in February 2025.