UK-based software and robotics platform Ocado Group has reported that its revenue for the first half (H1) of the fiscal year 2022 (FY22) dropped by 4.4% to £1.26bn from H1 2021.
Revenue for Ocado Retail, the company’s joint venture with Marks & Spencer Group, also fell by 8.3% to £1.12bn ($1.34bn) during the six-month period.
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Ocado noted that the grocery market contracted due to the Covid-19 pandemic and the UK’s ongoing cost of living crisis.
During the 26 weeks to 29 May, revenue for the company’s International Solutions business rose by 119.9% to £59m from £26.6m in H1 FY21.
Ocado posted losses before interest, tax, depreciation and amortisation of £13.6m compared with earnings of £61m for the same period of last year.
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The firm’s loss before tax also increased to £211.3m in H1 2022, up from £27.9m in the prior-year period.
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By GlobalDataDuring this period, Ocado added six customer fulfilment centres (CFCs), while the company now has 16 CFCs live for Ocado Smart Platform partners worldwide.
Ocado Group CEO Tim Steiner said: “The last six months have seen significant progress at Ocado Group and we have put all the building blocks in place to deliver profitable growth and strong cash flows.
“Our International Solutions business has good momentum, with 16 CFCs now open, of 58 committed so far. Each of these CFCs will generate dependable, recurring cash flows and attractive returns on capital.
“Eleven of the world’s leading grocers are looking to Ocado to provide the technology and solutions to power their online grocery activities and our new partner pipeline is as strong as ever.”
For the full year, Ocado expects to post low single-digit growth in revenue and low single-digit margin growth for its Ocado Retail business.
Last month, the company revealed plans to raise £575m through a share placing to fuel its expansion.
