**London**: Ocado Group has revealed strong financial performance for the year ending 1st December 2024, with revenues up 11.6% and significant growth in adjusted EBITDA, driven by a surge in customer acquisition and order frequency, according to CEO Tim Steiner.
Ocado Group has announced its full year results for the 52 weeks ending 1st December 2024, revealing an impressive growth trajectory that highlights the company’s resilience in the online retail sector. According to Food Management Today, the group’s revenue reached £1,214.5 million, marking an 11.6% increase from the previous year’s total of £1,088 million.
The financial report indicates that total adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw significant growth, rising by £101.7 million to a total of £153.3 million. This positive trend was mirrored in Ocado Retail, where revenue surged by 13.9% to £2,685.8 million. The revenue uplift was attributed to a “strong growth” in the number of orders placed per week, with a notable increase of 12.5% bringing the total weekly orders to 442,000, compared to 393,000 in the previous year.
Ocado’s customer base also expanded, with active customers climbing by 12.1% to reach 1,119,000, indicating both a rise in customer acquisition and an increase in order frequency. The average basket value has seen a modest increase of 1% to £122.09, from £120.94 in FY23, while average item prices rose by 0.4% to £2.75. Basket sizes remained relatively stable, averaging 44.3 items, a situation Ocado attributes to ongoing investments in enhancing value and service.
Tim Steiner, CEO of Ocado Group, commented on the company’s progress: “In 2024, we delivered a shift in the potential of robotics and automation to improve retail supply chains. Our latest technologies have begun to roll out at scale to Ocado’s global partners. This marked a milestone for our technology, with the already market-leading productivity of an Ocado CFC almost doubling over the course of a decade.”
He further noted the growing importance of online retail in the grocery market, stating, “At the same time, online continues to drive the greatest share of organic growth in the global grocery market. Our partners are well set up to take advantage of this growth with Ocado’s technology, and we have a strong prospect pipeline across grocery, non-grocery and logistics.”
Steiner also highlighted Ocado Retail’s position as the fastest-growing grocery retailer in the UK, as it welcomed its one millionth active shopper for the first time. He elaborated on the company’s commitment to global expansion, remarking, “We have learned valuable lessons from our early global deployments. Over the past year we’ve significantly increased the number of Ocado experts embedded across our global partners, helping them to hone logistics operations and build new online strategies alongside the Ocado Smart Platform.”
Looking ahead to 2025, Ocado anticipates launching new enhancements aimed at driving faster growth and improving operational efficiency. Steiner concluded by reinforcing the company’s dedication to providing an enhanced online shopping experience across some of the world’s largest grocery markets.
Source: Noah Wire Services
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