Financial Results Half Year Results 2021

Over the past six months, we’ve continued to respond well to the demand and challenges of faster growth that the COVID-19 situation has created in online grocery worldwide. We’re now live with four international CFCs, and continue to support all our partners in realising their tactical and strategic ambitions for growth and leadership in online grocery, working with them to deploy customised configurations of capacity across our suite of OSP solutions, from enhanced in-store fulfilment (ISF), to CFCs ranging from micro to standard sizes.

The pace of OSP roll out is picking up globally. We now have automated CFCs live in four partner markets with two CFC go-lives for Kroger in the US over the past few months. Five partners are using our ISF solution. Seven out of nine are now live on the OSP platform.

Our success in scaling up with excellent execution so far, wouldn’t have been possible without the technology of simulations, modelling, and digital twins to allow us to deliver complex projects at speed. This core competency underpins our confidence as we accelerate into a rollout of 56+ committed CFCs, across 7 markets.

After successfully launching Bristol early in the first half, we’re due to take three more CFCs live for Ocado Retail in the next year alone, including reopening Andover after the devastating fire in 2019. These new CFCs will further increase capacity to support the continuation of the strong new customer growth the business has seen in the last few months.

We’ve been able to ramp up Ocado Retail’s first mini CFC in Bristol faster than ever before, and we think we can go even faster with future sites, knowing that we’ve already tested the technology at a scale beyond what any partner has yet commissioned for one site, in Erith.

Our continued 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.

Hear highlights from our business leaders

Mel Smith from Ocado Retail talks about leadership and how Ocado Retail has grown its UK grocery share to 1.8% with increased capacity, sales and orders. With a leading customer offer through Ocado.com and Zoom, she’s confident there’s a lot more growth ahead.

Mark Richardson, Chief Operating Officer, talks about speed and how the Ocado Smart Platform allows partners to scale online grocery service quickly and profitably. Ocado Retail’s first mini CFC in Bristol is evidence of this, going from site announcement to go-live in just over a year and a site ramp faster than ever before.

Brian McClory, Managing Director of Ocado Logistics, talks about resilience and how the extraordinary work of colleagues minimised impact to customers after the Andover fire, and how two years later the site is ready to launch next month.

Luke Jensen, CEO of Ocado Solutions talks about partnership and the connections between our partners, enabling them to learn from each other’s operations and experiences with Ocado’s Solutions.

James Matthews, CEO of Ocado Technology, talks about how problem-solving is in our DNA, and the vital part that digital twins play in helping us to deliver complex projects at speed for our partners around the world.

*These measures are Alternative Performance Measures, refer to note 16 in the condensed financial statements

1. Revenue is online sales (net of returns) including charges for delivery but excluding relevant vouchers/offers and value added tax. The recharge of costs 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.

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

3. Exceptionals include net £[59.8] million income related to the Andover CFC fire.