Ocado Group Warns of Lower Fiscal Year 2022 Sales as Inflation Hits Consumers

By Sabela Ojea

Ocado Group PLC said Tuesday that revenue increased in the third quarter of fiscal 2022, but that it expects to see a decline in full-year sales as inflation hits consumers' spending ability.

The online grocer and retail-technology specialist said revenue for the 13 weeks ended Aug. 28 increased 2.7% to 531.5 million pounds ($621 million) a year earlier, boosted by an 11% rise in average orders per week.

The FTSE 100 listed company said its active customer numbers also grew by 23% on year, but that the value of its consumer's average basket declined by 6% and it expects to see a decline in fourth-quarter profitability.

The company, which increased its selling prices by 5% on year, hasn't been able to offset the high energy costs it faces and, even though sales for the fourth-quarter are anticipated to grow by a mid-single digit, full-year sales are expected to decline.

Ocado also expects to close its fiscal 2022 with close to break-even earnings before interest, taxes, depreciation and amortization, it added.

Write to Sabela Ojea at [e-mail]; @sabelaojeaguix

(END) Dow Jones Newswires

September 13, 2022 02:53 ET (06:53 GMT)

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