Markets respond to Ocado results despite fire damage

Grocery delivery firm Ocado (LON:OCDO) has seen its shares rise by 4.53% to 1,199.50p (as of 14:20 GMT) after the company reported that revenues in the quarter ended 3rd March had grown by 11.2% despite being negatively impacted by a warehouse fire. Average weekly order numbers continued to climb but the value of the average sales basket dropped slightly.

CEO Tim Steiner commented: “Our first quarter was characterised by continued strong underlying growth in Ocado Retail but also the initial impact of the fire at our CFC in Andover on our headline numbers.

The fire has been a setback, but it will be only a temporary one. Over the last few weeks, our teams have been working hard to minimise any disruption to our customers and we will build a state-of-the-art replacement facility that reflects all the innovations and improvements we have made since Andover opened in November 2016.

At the same time we all remain focused on delivering customers the very best service, quality, choice and value. Our commitment to these objectives underpinned the underlying progress we made in the quarter.

With the Joint Venture signed with M&S at the end of February, Ocado Retail has never been in a stronger position to lead channel shift while constantly setting the bar for excellence in online grocery in the UK. We are looking forward to the future with excitement and determination“.