Ocado Share Discussion Threads

[qantas] 02/3/2024 22:51

BBC News - Ocado warns M&S of legal action over food deal



Please do your own research as always and always follow FCA guidelines.

[action] 02/3/2024 09:07

Not invested so far. Half owned by M&S who has hold on to w90m performance fee to be paid as target not reached. Looks interesting.

[ny boy] 01/3/2024 14:25

Bears are back, they haven't given up yet 470p double bottom, needs to hold again

[stutes] 01/3/2024 10:49

Following the update and City response I believe its time for CEO to go and for him to lose his bonus/options due to: the recent CFC mishaps, Kroger and M&S issues.

[ny boy] 01/3/2024 09:49

Added a few more @497

[qantas] 01/3/2024 08:42

Imitation is the sincerest form of flattery:



Please do your own research as always and follow FCA Guidelines.

[ny boy] 29/2/2024 14:40

Let's see if we can rally to test 600p post results this Spring

[fuji99] 29/2/2024 14:10

US inflation figure is not bad at all.

[darrin1471] 29/2/2024 14:10

Either way, Ocado Retail is going to be taken out of the results in 2 years time which makes this a very different investment.

[darrin1471] 29/2/2024 14:08

I think M&S will take the other 50% before the end of the decade. It makes sense for both sides. OCDO will want the best price and M&S will want to pay as little as possible. M&S are undergoing an expensive store upgrade and may need to issue more stock to pay for the other 50%. It is going to be hard to persuade M&S investors to pay more for the other 50% if the first 50% is only breakeven at best.
Also of note in the results is the possible legal dispute over the £160m final payment for the first 50%. Ocado appear to be looking for money they have not earned by changing the "target".
As with the AutoStore settlement, I think OCDO will be looking for an overall settlement where M&S take 100% of Ocado Retail and both companies can be happy.

[ny boy] 29/2/2024 14:06

Took some at 492 the US data was not bad, no surprises, and markets should rally.

Hopefully a good entry point, time will tell

[dealy] 29/2/2024 13:48

Based on the lack of gain and lack of volume: neither the friendly CPI data nor the improved results have been considered by investors

[fuji99] 29/2/2024 13:34

IMO M & S may take it over for its online shopping benefiting from its robotic arm for better execution and efficiency against comeptition.

[darrin1471] 29/2/2024 12:59

I think the following taken from the results is an important change:

"Deconsolidation of Ocado Retail
Ocado Group plc and M&S are both joint equal shareholders of Ocado Retail Limited. At present the results of Ocado Retail Limited are consolidated into the results of Ocado Group plc as Ocado Group plc are deemed to be the controlling shareholder via certain tie-breaking rights. Our current intention is to give up those tie-breaking rights to M&S in early April 2025. There will be no change in the economic interest of both shareholders in Ocado Retail Limited, or any consideration paid by M&S, as a result of this proposed change. After giving up the tie-breaking rights to M&S, we expect that the results of Ocado Retail Limited will cease to be consolidated into the results of Ocado Group plc and will instead be equity accounted for as an investment from this point onwards. From this point, M&S would have the right to consolidate the results of Ocado Retail Limited pursuant to the terms of the original Shareholder Agreement signed in August 2019 when the Joint Venture was formed."

So my reading of the above is that the revenue/profits/losses from Ocado retail will be removed from the headline numbers.
Ocado will become Technology Solutions and Ocado Logistics.
Ocado will become a technology plc resulting in more investor focus on Technology Solutions growth and profits.
What would the current FY results look like if you removed Ocado retail from them?

[fuji99] 29/2/2024 12:09

Niels: Agree with you regarding revenue.
And I think this is a long term hold as it is really starting shaping up at all fronts. Expansion into other areas outside food distribution will be their targets as they progress.

[ny boy] 29/2/2024 11:33

No rush here, first wave sold the news, let's see the reaction to all important US PCE is at 13.30

[stutes] 29/2/2024 11:17

If you make a threat you have to be prepared to keep it and expect the fallout. Imho it's time for the Board to change CEO.

[nielsc] 29/2/2024 11:09

Fuji,"In financial 2024, Ocado predicted a further reduction in cash outflow of GBP100 million."They will be receiving £100m AutoStore in 2024. Perhaps this is what they mean.All about revenue.Revenue is vanity.Profit is sanity.A loss of £393.6m in 2023.Cheers,Niels

[spob] 29/2/2024 11:02

.
MKS not happy I see.

Is the idiot who decided a 50/50 partnership with Ocado was a good idea still working there?

[fuji99] 29/2/2024 10:15

"Overall revenue growth in financial 2024 is expected to be in a mid-to-high single-digit percentage, Ocado said.

Ocado said it has installed capacity at its retail partners for gross annual grocery sales of over GBP8 billion.

Technology Solutions revenue jumped 44% to GBP429.0 million from GBP291.4 million. Ocado forecast 15% to 20% growth in the division in 2024.

Underlying cash outflow of GBP473 million in financial 2023 compared to an GBP829 million outflow in financial 2022, and the GBP356m improvement was better than guidance of plus GBP200 million.

In financial 2024, Ocado predicted a further reduction in cash outflow of GBP100 million."

[nielsc] 29/2/2024 10:10

Darrin,A good point. Ocado have only received £41.7m of the £200m in 2023. It is being paid in monthly instalments over 2 years.Without this payment the cash burn would have been £216.1m in H2 2023.So still burning through cash at a high rate. They have bond rollovers in 2025-2027, which will most certainly have a good bond coupon on them.Ocado will just have to borrow more as they have always done. How many more decades can this go on for?Cheers,Niels

[darrin1471] 29/2/2024 09:46

nielsc. Does that cash burn figure include the "£187m from the settlement reached with AutoStore"

I hold no position in OCDO long or short.

[spob] 29/2/2024 09:43

.
Another year

Another £400m down the toilet

The music is still playing for Ocado directors

[stutes] 29/2/2024 09:31

The Board should ask if the CEO is the right person to lead Ocado? The CFC rollout has been damaged by media speculation over M&S and Kroger being unhappy with actual performance - a case of speed without control?
I think Ocado needs to show good returns on its business rather than a an empire of cfc's waiting for the market to catch up. Ocado needs a new CEO who is more focused on delivery than empire building.
I wonder what the share price would be if Ocado appointed a new CEO?