Full Year Results 2020

Over the full year, we’ve responded well to the demands and challenges of faster growth that the COVID-19 situation has created in online grocery. We upped our capacity for Ocado Retail, went live with our first two international CFCs, and continued to work hard for our clients for future go-lives.

Our thanks go to all of our colleagues working on the frontline in the UK and thanks to all our colleagues who have helped us to deliver on our promises to partners, despite the disruption caused by the pandemic, enabling them to serve as many customers as possible at this important time.

In the Solutions business, we reached some big milestones with the opening of our first-ever international CFCs for Sobeys in Canada, and Casino in France. And we’re due to go live with even more CFCs for our clients over 2021. We’ve had to adapt to a new reality and ways of working throughout the pandemic, but this has helped provide learnings and an improved template for future projects.

Our 35% Retail Revenue growth demonstrates Ocado’s ability to meet unprecedented and sustained demand for online grocery in the UK. Ocado Retail has achieved these levels of growth, with improved profitability. Over 2021 we have three more CFCs going live which will further increase capacity for both existing and new customers.

Hear from our business leaders and partners

Luke Jensen, CEO of Ocado Solutions, and Mark Richardson, Chief Operating Officer talk through some of the highlights of the past year and how, despite COVID-19, we successfully launched CFCs in France and Canada. And by the end of 2021, seven of our partners will be live on our OSP platform, and they explore why we are ready to ramp up capacity as fast as our partners require, with uniquely flexible solutions for all missions and markets.

Then we hear from some of our partners from around the world. Mel Smith from Ocado Retail talks about how they've been facing the challenges of COVID-19 with the support of Ocado Group. Michael Medline from Sobeys explains why their NPS is the best he's seen in his career since launching their CFC with Ocado Group. And Rodney McMullen from Kroger talks through their CFC openings for 2021 and how our partnership will help enhance their customer experience and enable them to serve even more customers.

Notes:

1. Other excludes eliminations of £(0.3) million in FY 2019. Prior year segmental EBITDA for the UK Solutions & Logistics, International Solutions and Other segments re-presented following a review and re-allocation between segments of Group administration costs. Nil impact on Group and Retail EBITDA. See note 2.1 in the condensed financial statements.

2. Primarily due to Andover fire with £99.9 million net insurance reimbursement recognised in the year for rebuilding the CFC and business interruption.

3. Revenue is online sales (net of returns) including charges for delivery but excluding relevant vouchers/offers and value added tax. The recharge of costs and associated fees to our UK Solutions clients and International Solutions clients are also included in revenue with the exception of recharges to Ocado Retail which are eliminated on consolidation.

4. EBITDA* is a non-GAAP measure which we define as earnings before net finance cost, taxation, depreciation, amortisation, impairment, and exceptional items*

5. Group EBITDA reflects an IFRS 16 impact of £27.1m (FY19: £25.4m).