If you consider the drop in share price - why hasn't XEO been sacked? If the company says the share price doesn't reflect the true value of the business then why should bonus shares reflect the sp?
Overall the highly rewarded CEO doesn't appear to generate any value for shareholders- the retail MD seems to be the only one? Time to sack CEO and break the group up to release the value. |
Ocado has to consider delisting from the UK markets and list Stateside.
The Trump effect alone is creating a positive feelgood factor instead of the desperation we feel with Rachel from accounts in charge and creating mayhem.
Although the truth is the UK markets have been a cesspit for years. |
The more time we give Ocado the more the can is kicked down the road. Time for delivery or a breakup. |
 1224saj
OCADO GROUP PLC
14 January 2025
Ocado Retail Q4 Trading Statement
Strong performance throughout 2024; accelerated sales growth in Q4,
remaining the fastest growing grocer in the UK
Ocado Retail Ltd ("Ocado"), a joint venture between Ocado Group plc ("Ocado Group") and Marks & Spencer Group plc ("M&S"), today announces its trading statement for the 13 weeks to 1st December 2024
Q4 Highlights
· Q4 Retail revenue grew by 17.5% to £715.8m as we continued to deliver on our strategy of unbeatable choice, unrivalled service and reassuringly good value; enabled by Ocado's technology and automated Customer Fulfilment Centres
· Volumes (total items) on Ocado.com grew 17.0% year-on-year and average orders per week grew by 16.9% to 476k
· Performance was driven by active customer base growth of 12.1%, now at 1.1m active customers, and greater frequency as more customers shopped with us more of the time
· Growth was driven by order volumes; average basket sizes were stable and average selling prices were flat as we continued to invest in price and value ahead of the market
Key financial drivers
13 weeks
Q4 2024
13 weeks
Q4 20237
Year-on-year change (%)8
Retail revenue (£ million)1
715.8
609.4
+17.5
Volumes - total items (million)2
271.6
232.2
+17.0
Average orders per week (000s)3
476
407
+16.9
Active customers (000s)4
1,119
998
+12.1
Average basket value (£)5
120.85
120.62
+0.2
Average selling price (£)6
2.75
2.75
+0.1
Average basket size (items)
43.9
43.8
+0.1
FY 2024 (52 weeks to 1st December 2024)
· Full year Retail revenue grew by 13.9% to £2,685.8m
· Volumes (total items) on Ocado.com grew by 12.9% and average orders per week grew by 12.5%, driven by growth in active customer base of 12.1% to 1.1m active customers, and increased frequency
· Average basket value increased by 1.0% to £122.09, with basket size up 0.3% to 44.3 items and a 0.6% increase in ASP, well below UK grocery inflation9 of 3.0%
· Our topline growth, as well as continued focus on cost and efficiency, has resulted in strong EBITDA growth
Progress implementing our strategy
· We have offered even better choice, including almost all of the M&S addressable range live on site and more joint launches than prior years. We know M&S products continue to bring new customers to Ocado.com. Alongside our strong range of bigger brands and Ocado Own Brand, we also offered more innovation and newness to customers through our challenger brands
· Our already high Perfect Orders (on time and in full, with no substitutions) increased by +7ppt across the year, and 99% of items were delivered as promised. Product availability and delivery slot availability both improved whilst we also added an additional half a day of freshness to the shelf life of our produce
· We have continued to invest meaningfully in price with price perceptions continuing to improve as a result, with value satisfaction increasing +4.3ppt in the year. We lowered more prices through our 'Big Price Drops' and continued with our Ocado Price Promise, basket matching on 10,000 like-for-like products with Tesco
Christmas Trading
· Ocado delivered another record-breaking Christmas, with our highest ever level of sales over the peak Christmas trading period
· We offered an extensive seasonal range across M&S and many other suppliers, with customer favourites including the M&S party food selection from hot honey halloumi to pigs in blankets to the showstopper entertaining range; cheeses from a wide range of suppliers including Paxton and Whitfield; and a continuing popularity of low and no alcohol drinks for the festive season
· Our CFC efficiency improved throughout the year with average units per hour, "UPH" rising to 220, up 15% versus last year, with our newest CFC in Luton reaching 269 UPH in the year as we further rolled out On-Grid Robotic Pick. Over the Christmas period our network exceeded design capacity demonstrating the further growth potential of our CFCs.
Hannah Gibson, Ocado Retail's Chief Executive Officer, said:
"2024 was a year of strong growth. In the fourth quarter, we accelerated sales again - reaching 500,000 orders per week for the first time, at the end of November.
We've achieved this growth by being laser focused on customer service and delivering unbeatable choice, unrivalled service and reassuringly good value to the households and families that we serve. We've made a series of significant improvements - including making sure customers can buy all their favourite M&S products, ensuring our service is near perfect, shifting our value perceptions as customers realise how much we've moved on price and helping new customers discover Ocado.
"As we enter the next phase of our strategy, we are excited about the future of online grocery and our role in shaping it. Priorities for this year are raising the bar again in our leading customer proposition, making further progress on improving profitability and transitioning the business onto new technology platforms."
FY25 Guidance
We have confidence that the business will continue to show market-leading sales growth and volume momentum in FY25. Moreover, we expect to make further progress on driving operational efficiency and scale leverage, continuing on our journey towards a high mid-single digit adjusted EBITDA margin in the mid-term.
Our expectations for further growth will be reflected in our guidance for FY25 for Ocado Retail at the Ocado Group Full Year Results on 27 February 2025.
Alongside this release, a short video is available on the Ocado Group website here in which Ocado Retail CEO, Hannah Gibson, discusses recent performance, strategy, and the outlook for Ocado Retail.
Ocado Group, on behalf of the joint-venture, will be hosting an analyst conference call at 8.00am today. Please use participant number: +44 (0) 33 0551 0200 and confirmation code: Ocado Q4 - Analyst Call. A replay facility will be available through an on demand link for 90 days following the announcement.
Contacts
· Stephen Daintith, Chief Financial Officer, Ocado Group plc on +44 1707 228 000
· Nick Coulter, Head of Investor Relations, Ocado Group plc on +44 1707 228 000
· Fraser Ramzan, Head of Investor Relations, Marks and Spencer Group plc, on +44 20 3884 7080
· Oliver Hughes at MHP on +44 20 3128 8100 or ocado@mhpgroup.com
About Ocado Retail
Ocado.com (operated by Ocado Retail) is the world's largest dedicated online supermarket and is a 50:50 joint venture between Marks & Spencer Group and Ocado Group.
Reaching over 80% of the UK population, more than 1 million active customers benefit from an unbeatable range of around 45,000 products (including M&S, Ocado Own-Range, big-name brands and challenger brands), unbeatable service with next-to-no substitutions. Every order is carefully packed in one of seven distribution centres using world-leading software and technology. Shopping is then delivered directly to customers using a network of regional spokes and fleet of brightly-coloured delivery vans.
Thoughtful service features such as colour-coded bags, digital receipts provided in date order, reminder texts with your driver's name, along with convenient hourly delivery slots complemented by award-winning customer service on email, phone and social media.
Ocado Retail is also responsible for Zoom by Ocado, its rapid grocery delivery service.
Notes
1. Retail revenue comprises revenues from Ocado.com and Zoom by Ocado
2. Volumes - total items refers to results of Ocado.com
3. Average orders per week refers to results of Ocado.com
4. Active customers are classified as active if they have shopped at Ocado.com within the previous 12 weeks
5. Average basket value refers to results of Ocado.com
6. Average selling price refers to Ocado.com and is defined as product sales divided by total eaches
7. FY23 was a 53 week year and Q4 2023 was 14 weeks. To provide a like-for-like comparative the Q4 2023 trading update was based on the 13 weeks ending 26th November (with the exception of active customers which is based on the 53rd week year exit number)
8. Growth percentage calculated on an unrounded basis
9. NIQ Total Till and NIQ Homescan from Nielsen Consumer LLC |
Good afternoon Arja it was a strange trading day yesterday. |
surprised at the quite big pullback for OCDO yesterday but must have been some reason for it . nice weekend all . |
7 yes approx since Kr partnership announced, time for Ocado to show its shareholders the return. |
Looking for the RNS on or around the 16/01/25 ?? |
Why Ocado is a Buy: A Deeply Undervalued Gem on the UK Stock Market
The UK stock market remains in a state of relative stagnation, with valuations for many companies at multi-decade lows. This has fueled a narrative of pessimism among investors and analysts alike. Yet, this broad malaise has also created unique opportunities for those willing to look past the short-term gloom. One such opportunity is Ocado Group Plc, a stock that not only remains undervalued but also holds the potential for a dramatic rebound.
Lingotto's Investment Speaks Volumes
In a market where institutional backing is often seen as a strong signal, Lingotto Investment Management’s recent doubling of its stake in Ocado is a game-changer. Lingotto, a respected name in global finance, has displayed conviction in Ocado’s long-term prospects, signaling to the broader market that this is a company with immense untapped potential. This confidence from a major institutional investor should not be overlooked, particularly in a stock that has been heavily shorted in recent months.
A Depressed Market—But Not a Depressed Opportunity
It’s no secret that the UK stock market has underperformed relative to global peers. Muted growth forecasts, and investor hesitancy to allocate capital to UK-listed equities have all contributed to the malaise. Yet, this environment has little to do with Ocado’s fundamentals or its long-term value proposition. Instead, it represents a mispricing opportunity for savvy investors to take advantage of the broader pessimism.
Indeed, Ocado’s world-leading proprietary technology, partnerships with major global retailers, and position at the forefront of automation and e-commerce logistics make it an outlier in an otherwise subdued market. This isn’t a business bogged down by lack of growth; it’s a disruptor poised to capitalize on major global trends.
Analyst Optimism: A Trebling of Share Price?
Some analysts have gone as far as to suggest a trebling of Ocado’s share price is within reach, and while this may sound ambitious to some, it isn’t far-fetched when you examine the fundamentals. Ocado’s long-term contracts, innovative technology, and first-mover advantage in online grocery logistics could yield exponential returns. The company's ability to roll out its proprietary Smart Platform globally makes it a scalable operation with significant margin expansion opportunities as more retailers integrate its technology.
The Short Squeeze Potential
One of the most compelling catalysts for a rapid recovery in Ocado’s share price lies in the shorts that have piled into the stock. Heavy short interest often creates a powder keg for price movements. Once buying pressure begins to build—whether driven by institutional activity like Lingotto’s or a shift in sentiment—short sellers will be forced to cover their positions. This creates a self-reinforcing cycle where buying accelerates as shorts scramble to exit.
We’ve seen this dynamic play out in other heavily shorted stocks, and Ocado is particularly well-positioned for such a squeeze given its fundamentally sound business model and strong institutional backing. This phenomenon could accelerate any rebound far beyond what normal buying pressure alone would achieve.
Conclusion
While the UK stock market may currently be in a depressed state, Ocado offers investors a golden opportunity to capitalize on a fundamentally strong company that remains misunderstood and undervalued. Lingotto’s doubling of its stake is a clear vote of confidence, and the prospect of a short squeeze adds an additional layer of upside potential. For those with the patience to ride out short-term volatility, Ocado could prove to be one of the most compelling buys in the UK market today.
Investors should focus not on the broader market’s malaise but on the company’s unique strengths, global opportunities, and a potential price rebound that could come faster and sharper than many anticipate. |
2025 should mean either Ocado can deliver or it splits itself up, becoming a retailer and IT logistics with shareholders given shares in each entity. In splitting the business it may encourage more partnerships with big retailers and logistics firms? |
Why Ocado is a Buy: A Deeply Undervalued Gem on the UK Stock Market
The UK stock market remains in a state of relative stagnation, with valuations for many companies at multi-decade lows. This has fueled a narrative of pessimism among investors and analysts alike. Yet, this broad malaise has also created unique opportunities for those willing to look past the short-term gloom. One such opportunity is Ocado Group Plc, a stock that not only remains undervalued but also holds the potential for a dramatic rebound.
Lingotto's Investment Speaks Volumes
In a market where institutional backing is often seen as a strong signal, Lingotto Investment Management’s recent doubling of its stake in Ocado is a game-changer. Lingotto, a respected name in global finance, has displayed conviction in Ocado’s long-term prospects, signaling to the broader market that this is a company with immense untapped potential. This confidence from a major institutional investor should not be overlooked, particularly in a stock that has been heavily shorted in recent months.
A Depressed Market—But Not a Depressed Opportunity
It’s no secret that the UK stock market has underperformed relative to global peers. Muted growth forecasts, and investor hesitancy to allocate capital to UK-listed equities have all contributed to the malaise. Yet, this environment has little to do with Ocado’s fundamentals or its long-term value proposition. Instead, it represents a mispricing opportunity for savvy investors to take advantage of the broader pessimism.
Indeed, Ocado’s world-leading proprietary technology, partnerships with major global retailers, and position at the forefront of automation and e-commerce logistics make it an outlier in an otherwise subdued market. This isn’t a business bogged down by lack of growth; it’s a disruptor poised to capitalize on major global trends.
Analyst Optimism: A Trebling of Share Price?
Some analysts have gone as far as to suggest a trebling of Ocado’s share price is within reach, and while this may sound ambitious to some, it isn’t far-fetched when you examine the fundamentals. Ocado’s long-term contracts, innovative technology, and first-mover advantage in online grocery logistics could yield exponential returns. The company's ability to roll out its proprietary Smart Platform globally makes it a scalable operation with significant margin expansion opportunities as more retailers integrate its technology.
The Short Squeeze Potential
One of the most compelling catalysts for a rapid recovery in Ocado’s share price lies in the shorts that have piled into the stock. Heavy short interest often creates a powder keg for price movements. Once buying pressure begins to build—whether driven by institutional activity like Lingotto’s or a shift in sentiment—short sellers will be forced to cover their positions. This creates a self-reinforcing cycle where buying accelerates as shorts scramble to exit.
We’ve seen this dynamic play out in other heavily shorted stocks, and Ocado is particularly well-positioned for such a squeeze given its fundamentally sound business model and strong institutional backing. This phenomenon could accelerate any rebound far beyond what normal buying pressure alone would achieve.
Conclusion
While the UK stock market may currently be in a depressed state, Ocado offers investors a golden opportunity to capitalize on a fundamentally strong company that remains misunderstood and undervalued. Lingotto’s doubling of its stake is a clear vote of confidence, and the prospect of a short squeeze adds an additional layer of upside potential. For those with the patience to ride out short-term volatility, Ocado could prove to be one of the most compelling buys in the UK market today.
Investors should focus not on the broader market’s malaise but on the company’s unique strengths, global opportunities, and a potential price rebound that could come faster and sharper than many anticipate. |
Everybody knows that Ocado has debts of £1.2 Billion to service and it will have to reduce that figure with another fund raising (share placing and rights issue).
Its coming. |
From half year results: looking forward to full year results next month!
● Underlying cash outflow*2 of £(197)m: £101m improvement vs. 1H23, driven by higher revenues, increasing EBITDA margins, lower capex and good cost control; continuing a sequential improvement in the Group's cash flow. Liquidity remains strong at £1,047m (1H23: £1,309m)
● Improving mid-term cash trajectory: underlying cash outflows in FY24 now expected to be around £150m lower (improvement) vs. FY23. Clear roadmap for Group to turn cash flow positive during FY26.
● Raising FY24 EBITDA* & cash flow guidance: Underlying cash flow* expected to improve by £150m (previously £100m); Technology Solutions to achieve a mid-teens EBITDA margin (>10% previously) |
Lol nice try - nah - don't think so. |
MARKET BRACED FOR A SIZEABLE FUND RAISING AT OCADO
====================================================
Everything hung on grocery retailer OCADO having a decent Christmas, but a series of calamities including failed deliveries, missing items and robotics failures meant it just didn't happen.
Not even a prime time advertising campaign offering to 'match Tesco prices on some groceries' has done enough to win over new customers and then retain them.
Consequently OCADO is likely to need a substantial fund raising cash injection if things don’t pick up soon. Shareholders are likely to find out by late-January or mid-February.
Worryingly, if the company manages to limp through in the short term, the longer-term prospects for the business look very shaky, at best. |
Today's announcement that Lingotto, backed by the Agnelli family's Exor empire, has more than doubled its stake in Ocado is a resounding vote of confidence from one of the most astute and strategic investment groups in the world.
The Agnelli family, renowned for its long-term, value-driven approach to capital allocation, clearly sees Ocado as a transformative player in the global retail and technology landscape.
Such a significant increase in holding not only underscores the immense growth potential in Ocado’s business model and proprietary technology but also signals to the market that a seasoned, influential investor believes the company is deeply undervalued at current levels.
This move should serve as a wake-up call for sceptics, reaffirming Ocado’s position as a compelling long-term investment with substantial upside.
The Agnelli family, controls:
Stellantis,
CNH Industrial,
Ferrari,
Juventus FC,
Cushman & Wakefield,
The Economist Group.
To name but a few.
Todays increase in holding is IMMENSELY interesting.
Could it be they have their sights set on Ocado? |
Today's announcement that Lingotto, backed by the Agnelli family's Exor empire, has more than doubled its stake in Ocado is a resounding vote of confidence from one of the most astute and strategic investment groups in the world.
The Agnelli family, renowned for its long-term, value-driven approach to capital allocation, clearly sees Ocado as a transformative player in the global retail and technology landscape.
Such a significant increase in holding not only underscores the immense growth potential in Ocado’s business model and proprietary technology but also signals to the market that a seasoned, influential investor believes the company is deeply undervalued at current levels.
This move should serve as a wake-up call for sceptics, reaffirming Ocado’s position as a compelling long-term investment with substantial upside.
The Agnelli family, controls:
Stellantis,
CNH Industrial,
Ferrari,
Juventus FC,
Cushman & Wakefield,
The Economist Group.
To name but a few.
Todays increase in holding is IMMENSELY interesting.
Could it be they have their sights set on Ocado? |
Weakness of GBP makes many good UK institutions attractive to foreign entities. I hope Ocado can resist an opportunistic bid. |
Nice to see that Lingotto are stake building in Ocado (see RNS). Interesting.. |
Well written and factual |
The arrogance and short-sightedness of some market participants never ceases to amaze. Ocado has consistently delivered stellar performance, achieving record-breaking growth for 14 consecutive periods and solidifying its position as the fastest-growing online supermarket retailer. Despite this undeniable success—and the share price reaching over £6 within the last year—market manipulation and fear-driven sentiment have pushed the stock down to just above £3. The media coverage only adds to the absurdity, with stories celebrating a so-called “surge” from £2.76, as if the market itself hadn’t artificially depressed the price in the first place.
Meanwhile, analysts are issuing strong buy recommendations with price targets in the £8–£9 range, and rightly so. The CEO, aligned with long-term shareholder value, stands to earn a significant bonus once the shares reach £29—a level well within reach given Ocado’s robust fundamentals and growth trajectory.
The broader issue here is the structural dysfunction of the UK market, which appears to encourage fear-mongering and manipulation rather than fostering genuine investment confidence. The increasing short positions are a glaring symptom of this problem. By contrast, markets in the US impose stricter regulations against such behavior, making them a far more attractive option for a company like Ocado. A UK delisting in favor of a US listing would not only unlock greater value but also shield the company from the corrosive practices plaguing the UK market.
The recent Ocado update was entirely expected; industry insiders and even trade publications anticipated the positive news. Yet, in the lead-up, sentiment allowed the share price to slide from £4 to below £3, only for the market to feign excitement over a modest rebound to £3.10. The inconsistency is as baffling as it is frustrating.
Ocado remains a compelling investment opportunity. Its potential far exceeds incremental gains to £4, £5, or even £9.20; the company is well-positioned for a long-term climb to £29 and beyond. For those pursuing weekly trading opportunities, Ocado offers volatility and steady 10% swings. However, for investors seeking transformational wealth, the strategy is simple: buy, hold, and let Ocado’s operational excellence and market leadership drive exponential growth.
One can only hope that institutional pressure prompts the board to seriously consider delisting from the UK market in favour of the US, where Ocado’s performance would be appropriately valued and market manipulation deterred. |
The arrogance and short-sightedness of some market participants never ceases to amaze. Ocado has consistently delivered stellar performance, achieving record-breaking growth for 14 consecutive periods and solidifying its position as the fastest-growing online supermarket retailer. Despite this undeniable success—and the share price reaching over £6 within the last year—market manipulation and fear-driven sentiment have pushed the stock down to just above £3. The media coverage only adds to the absurdity, with stories celebrating a so-called “surge” from £2.76, as if the market itself hadn’t artificially depressed the price in the first place.
Meanwhile, analysts are issuing strong buy recommendations with price targets in the £8–£9 range, and rightly so. The CEO, aligned with long-term shareholder value, stands to earn a significant bonus once the shares reach £29—a level well within reach given Ocado’s robust fundamentals and growth trajectory.
The broader issue here is the structural dysfunction of the UK market, which appears to encourage fear-mongering and manipulation rather than fostering genuine investment confidence. The increasing short positions are a glaring symptom of this problem. By contrast, markets in the US impose stricter regulations against such behavior, making them a far more attractive option for a company like Ocado. A UK delisting in favor of a US listing would not only unlock greater value but also shield the company from the corrosive practices plaguing the UK market.
The recent Ocado update was entirely expected; industry insiders and even trade publications anticipated the positive news. Yet, in the lead-up, sentiment allowed the share price to slide from £4 to below £3, only for the market to feign excitement over a modest rebound to £3.10. The inconsistency is as baffling as it is frustrating.
Ocado remains a compelling investment opportunity. Its potential far exceeds incremental gains to £4, £5, or even £9.20; the company is well-positioned for a long-term climb to £29 and beyond. For those pursuing weekly trading opportunities, Ocado offers volatility and steady 10% swings. However, for investors seeking transformational wealth, the strategy is simple: buy, hold, and let Ocado’s operational excellence and market leadership drive exponential growth.
One can only hope that institutional pressure prompts the board to seriously consider delisting from the UK market in favour of the US, where Ocado’s performance would be appropriately valued and market manipulation deterred. |
US indices futures including nasdaq up from UK close yesterday . This augurs for tech stocks and OCDO is in that category I guess . Might well get to the 330 chart resistance today and good luck to all holding stock :) |
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