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Winter storms that caused widespread disruption during the final week of Ocado Group’s (OCDO) first quarter, reduced Ocado’s first quarter sales growth by almost one percentage point back to 11.7%.

Growth in retail revenue climbed 11.7% to £363.4m, compared to retail growth of 13.1% in the same period in 2017.

Average order size fell 0.4% to £110.45 compared with £110.85 in the 13 weeks to 26 February 2017 and average orders per week rose 11.1% to 280,00 year from 252,000 in the 13 weeks to 26 Feb 2017.

Tim Steiner, CEO, said he was pleased to report “another quarter of strong underlying sales growth” in the retail business in line with its guidance for the year.

He said staff succeeded in delivering nearly 300,000 orders over the last week of the quarter, often in the most trying conditions.

Steiner commented: “The reported rate of retail revenue growth over the quarter was broadly the same as in Q4 2017 as we operated at maximum capacity for most of the quarter and were impacted by the winter storms that caused widespread disruption during the final week.”

The company continued to make good progress ramping up its “revolutionary” new customer fulfilment centre in Andover and it was on track to open its latest facility in Erith in the middle of this year.

Steiner reported that the teams delivering the programmes for both Groupe Casino and Sobeys partnerships had been active and making progress. “We remain confident that our Ocado Solutions business will be able to do further deals with the momentum of new signings building over time.”

Ocado Group (OCDO) has dropped 2.3% to 572.2p in early trading following its first-quarter trading statement, 

Morning update

Imperial Brands (IMB) has sold a range of tobacco products including roll-your-own brands, tubes, tips, cigarette papers and other accessories in the USA.

The company said the disposal simplified its portfolio in the USA, enabling it to further sharpen its focus on driving revenue growth there from its core tobacco brands and next-generation products.

Alison Cooper, chief executive, said: “We are clear on our strategic priorities and focus for growth and are proactively actioning capital reallocation opportunities to generate additional shareholder value. The disposal of our US OTP [Other Tobacco Products] business is an example arising from the ongoing review of our assets.

“In next generation products, we are focused on delivering an exceptional consumer experience and we are investing behind an exciting innovation pipeline. Our product and market launch programmes are on track with the recent launches of myblu in the USA and the UK, with additional markets coming on stream in the next few months. In tobacco, our investment focus continues to deliver share gains in our growth brands and priority markets.”

Wynnstay Group (WYN), which is due to hold its AGM this morning will report “encouraging” trading in the first four months of the new financial year with increased demand for most products.

“This reflects the general improvement in output prices and farmer sentiment, particularly dairy farmers, after two years of very depressed pricing, often below the realistic cost of production,” chief executive Ken Greetham, was expected to say.

Ahold Delhaize (AD) has repurchased 805,129 of Ahold Delhaize common shares in the period from March 12, 2018 up to and including 16 March. It repurchased the shares at an average price of €18.22 per share for a total of €14.7m. The repurchases were made as part of the €2bn share buyback program announced on 8 November last year.

The total number of shares repurchased under this program to date is 23,564,498 common shares for a total consideration of €424.5 million.

On the markets this morning, the FTSE 100 climbed 0.36% to 7.065.55pts in early trading.

Early risers included Glanbia (GLB), up 0.4% to €14.30, SSP Group (SSPG), up 0.5% to 612.5p, Greencore (GNC), up 0.1% to 134.50p, Hilton Food Group, up 0.5% to 806p.

In addition to Ocado, early fallers included Sainsbury’s (SBRY), down 1.1% to 233.4p, Morrisons (MRW), off 1.3% at 208.2p, Marks & Spencer (MKS) moved down1.2% to 272.6p and McColl’s (MCLS) down 9.09% to 230p.

Yesterday in the City

The FTSE 100 closed down 1.69% yesterday at 7,042.93pts.

The big story of the day was the news of Diana Hunter’s resignation with immediate effect from the helm of beleaguered booze conglomerate Conviviality (CVR) – although this came as no particular surprise. Hunter had been under the spotlight after a week in which the business saw £350m wiped from its value. 

One industry source said her resignation was “almost certainly a condition of funding”. David Adams, non-executive chairman, becomes executive chairman, supported by Hunter who Conviviality said would “remain with the company for a period of time in order to provide transition support”. The group’s shares currently remain suspended.

Market climbers were a bit thin on the ground. Greggs (GRG) climbed 0.8% at 1193p. SSP Group (SSPG) rose 0.7% to 614p and Greencore (GNC) clawed back 0.5% to 135p still considerably shy of its 262.3p 52-week high. WH Smith (SMWH) edged 0.4% higher at 1991p.

Finsbury Food Group (FIF), which posted solid interim figures, yesterday, closed 0.86% higher at 117p.

Ocado Group (OCDO) dipped 2.3% ahead of this morning’s trading statement, Tesco (TSCO) fell 1.62% to 206.40p, Morrisons (MRW), 1.33% to 208.20p.

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