Ocado slips to loss but shares jump
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Shares in online grocery firm Ocado (LON:OCDO) jumped 55p to 1,065.5p (as at 14:22 BST) despite the firm slipping to a £9 million loss before tax for the first half of the year. The weaker than expected bottom-line performance came as costs mounted from the opening of its vast new robotic warehouse in south London.
Revenue from its own grocery retail activities grew 11.7% to £736.6 million, while sales from its Solutions business, which provides online grocery technology and services to other retailers, climbed 16.8% to £63.3 million.
Chief executive Tim Steiner said the period under review had been “transformational” for Ocado, with the firm having attracted a host of global grocers to sign up to its proprietary technology. He added that once at full capacity, the robotic warehouse “will be the largest automated warehouse for online grocery retail in the world and will showcase the scalability, adaptability and efficiency of our platform”.
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