Ocado shares climb higher on full-year results

Online grocer Ocado (LON:OCDO) saw its shares climb higher by 0.9% to 1,001.50p (11:33 GMT) on the back of its full-year results.

For the 12-months ended 2^nd December 2018, revenue increased by 12.3% to £1.8 billion, almost all of which coming from its retail segment (rather than solutions segment). EBITDA (earnings before interest, tax, depreciation and amortisation) – which is a commonly used performance measure for capital intensive businesses such as Ocado – declined by 20.7% to £59.5 million. This was, however, in-line with market consensus of £58 million to £61 million.

Active customers grew by 11.8% to 721,000, up from 645,000 in the comparable period a year earlier.

The company maintained its guidance of revenue growth in its retail business of 10% to 15% in the current financial year, as it expects to benefit from increased capacity at its fulfillment centres and market growth in the UK. However, it anticipates costs to increase, reflecting increased spending on distribution centers to fulfill obligations to its customers.