Ocado Retail has reported a 15.5% increase in revenue to £2.83bn ($3.8bn) for the financial year 2025 (FY25) propelled by a 13% increase in weekly orders on ocado.com.
Its active customer base saw a 14.6% rise to 1,177,000 by the end of FY25, compared to 1,027,000 at the end of the previous year.
Gross profit followed suit, with a 14.1% increase to £952m, although this was slightly lower than the revenue growth due to a marginal dip in gross margin from 34.1% in FY24 to 33.7% in FY25.
The decrease in gross margin was attributed to strategic price investments and Ocado Retail's choice not to pass the full impact of food price inflation onto consumers.
The annual report and financial statements for Ocado Retail mark its fifth year as a 50:50 joint venture between Ocado Group and Marks & Spencer Group (M&S).
The company stated: “We are reporting our results for an extended 70-week period as we move to align our financial period with M&S’s moving forward”.
Revenue for the 70 weeks ending 6 April 2025 increased 55.1%, primarily attributed to the expansion of its active customer base.
Ocado Retail also accounted for new extended producer responsibility packaging levies amounting to £3.2m from 1 April 2025.
Despite these factors, the company noted improvements in supplier funding and delivery income, as well as reduced produce waste and losses, which positively impacted gross profit.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) jumped 78.3%, reaching £53.5m for FY25, up from £30m in FY24.
This increase was driven by the growth in active customers and orders, optimisation of marketing efforts, more effective supplier negotiations and lower utilities costs across their customer fulfilment centres (CFCs).
The company increased the capacity utilisation of CFCs from 75% at the end of FY23 to up to 94% in February 2025.
Ocado Retail CEO Hannah Gibson stated: “Our topline growth, as well as continued focus on cost and efficiency, has resulted in adjusted EBITDA growth and a reduction to loss before tax. The strong growth we’ve achieved is testament to the hard work that the teams have put into delivering our strategy. We continue to focus on attracting more customers to Ocado to drive our growth and have a clear plan in place to achieve profitability.”
