Technology and online grocery group Ocado has posted a surge in first-half earnings and is focused on becoming cashflow-positive next year.
Ocado Group, which sells its bespoke technology to other retailers and operates a joint venture in the UK with Marks & Spencer, said EBITDA rose to £91.8m from £52m in the half-year to June 1, when revenue was ahead 13.2% to £674m.
Ocado said its “core priority” is to turn cash flow positive in the 2026 financial year, through “company-wide focus to progressively improve direct operating costs, cost profile and capital efficiency”.
Ocado Group chief executive Tim Steiner said: “Ocado Group has delivered a strong first half and we have reached important milestones both in our UK business, as well as across our international partnerships.
“Our technology solutions division has more than doubled EBITDA and our underlying cash flow has improved significantly, ending the period with liquidity in excess of £1bn. Our focus remains on turning cash flow positive during FY26, supported by continued growth with our partners and cost discipline across the business.
“In recent months we have gone live in one of the most highly developed online markets, with Lotte in Korea, as well as a market in an early stage of online development with Panda [in Saudi Arabia]. We have also expanded our long-standing partnership with Bon Preu in Catalonia.
“Meanwhile, Ocado Retail has maintained its position as the fastest-growing grocer in the UK, reflecting strong customer growth and continued market share gains. We continue to work hard with our partners to make sure they are all able to take full advantage of Ocado’s technology.
“Our current exclusivity terms are expected to roll off in multiple markets towards the end of this year, and we will start ramping up commercial conversations across global regions. Many of these markets have developed substantially in recent years and the online channel is fully established as the major growth driver in grocery globally. This is an exciting moment to bring the proven, enhanced and even more flexible Ocado offering back to these markets.”
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