Ocado has made a pre-tax profit in the fourth quarter of £300,000 and reduced pre-tax losses for the year by 52%.
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In its maiden full year results as a public company, the online grocer reported pre-tax loss of £12.2m for the year to November 28, including £3.5m of one-off IPO costs. Its operating loss was reduced by 63% to £5.4m.
Gross sales were up 29% to £551.1m, and adjusted EBITDA increased by 138% to £22m. Net sales increased 28% to £515.7m.
Tim Steiner, chief executive, said: “This was a landmark year for Ocado with gross sales up 29% for the year; we have delivered on the targets set out at the flotation. We have continued our focus on improving the customer offer, which has led to a record number of customers and sales with the achievement of profitability in the final quarter. Ocado’s growth continues to outpace the market.”
For the year, Ocado’s average orders per week increased by 31% to 92,916. Items delivered exactly as ordered were 99% for the year. Deliveries on time or early were 95% for the year.
Andrew Bracey, chief financial officer of Ocado, said: “Strong sales growth has led to Ocado reaching EBIT profitability pre-exceptionals for the second half of the financial year and EBT profitability in the last quarter of the financial year. Achieving profitability clearly demonstrates the operational leverage of the Ocado model, with incremental EBITDA conversion at 11.3% in the second half of the year.”
Ocado said its own-label reached 250 SKUs and was found in over 60% of all orders by the end of the year.