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Ocado Group is pleased to announce that it has successfully raised over £875m of gross liquidity through an approximately £578m equity placing and a new £300m revolving credit facility (RCF), providing a very healthy liquidity position for the Ocado Group of almost £2.0bn.
This funding secures sufficient liquidity to deliver the requirements of Ocado’s existing and expected customer commitments into the mid-term, with no additional Group financing as the business becomes cash flow positive. This includes funding the Group’s exciting plans to deliver a pipeline of 58 announced Customer Fulfilment Centres (CFCs) to 11 of the world’s leading grocers globally, helping accelerate channel shift online and support over £20bn in partner sales in the medium term. For Ocado Group, fulfilment of these customer commitments underpins a clear path to potential group revenue of £6.3bn+ and group EBITDA of £750m+ in the mid-term.
Ocado Group is focused on strengthening its position as the leading end-to-end solution provider for online grocery fulfilment globally, continuing to invest in new technology to remain ahead of the industry and establish leadership positions in its existing, as well as new, products and markets.
The equity placing comprises of new and existing shareholders, including retail shareholders, and Ocado management.
Commenting, Stephen Daintith, Chief Financial Officer, said:
This new funding provides Ocado with substantial liquidity to deliver our exciting business plan, that will create significant value for our partners, our shareholders, and all of Ocado’s stakeholders over the coming years. I am grateful to our lenders and shareholders for the strong support they have shown for this fundraise. The equity raise was many times oversubscribed despite the volatility impacting global equity markets. With this funding in place, Ocado is in a very strong financial position and we are fully focused on delivering for our partners and continuing to lead the online grocery market with new innovations and unbeatable technology.”
The Company re-iterates its existing guidance as provided at the time of the full year results on 8th February 2022 and updated for the trading statement issued by Ocado Retail on 25th May 2022.
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