By Ocado, the online grocer and retail-technology specialist, remains confident in its full-year guidance despite a widened pretax loss in the first half of the year. The company reported a pretax loss of £289.5 million ($378.5 million) in the 26 weeks to May 28, compared to a loss of £211.3 million in the same period last year.
The increased loss can be attributed to one-off costs associated with the closure of the Hatfield customer fulfilment center, as well as a revaluation of its joint venture partner, Marks and Spencer Group, amounting to £77.2 million.
However, despite the loss, Ocado experienced growth in revenue, reaching £1.37 billion compared to £1.26 billion the previous year. This growth can be attributed to increased revenue in their technology solutions division, which saw a 59% increase to £198.2 million.
Ocado Retail, the joint venture between Ocado and Marks & Spencer Group, also saw a boost in revenue, rising from £1.12 billion to £1.18 billion. This increase was driven by strong active customer growth, an increase in average orders per week, and a rise in average basket value.
Despite the challenges faced, Ocado remains confident in its full-year guidance as outlined in February.
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