Top story
Ocado Retail has lifted its full-year revenue expectations after continued momentum in the third quarter led to a 15.5% jump in sales to £658m.
It’s an acceleration from the 11% growth recorded in the first half and was driven by a 15.4% jump in volumes, a 14.7% increase in weekly orders and a 10.3% rise in active customers to 1.1 million.
The online grocer - a joing venture between Ocado Group and Marks & Spencer - also underinflated the wider market, with average selling prices in the 13 weeks to 1 September falling by 0.4%, compared with UK grocery inflation of 2%, as it continued to invest in price.
Average basket value in the quarter remained flat at £120.97, with basket size growing slightly year on year.
As a result of the continued strong trading - Ocado remains the UK’s fastest-growing grocer, according to data from Kantar and Nielsen - Ocado Retail has raised its guidence for 2024 revenues from mid-high single digits to low double-digit growth.
CEO Hannah Gibson said: “Our strategy remains focused on giving our customers unbeatable choice, unrivalled service and reassuringly good value. We’re seeing the momentum of this, with more customers shopping with us more often, getting even better service at better value.
“We know what our customers love, and we’re focused on our proposition every day. This includes our widest ever choice including more M&S food, more convenience with better availability of delivery slots and products, further improving our high perfect order rate and better value for money through our Ocado Price Promise and our latest Big Price Drop.
“We’re pleased with the progress we’re making and excited about how much more there is to deliver.”
Shares shot up 14% this morning.
Morning update
Vape manufacturer Supreme has delivered record organic revenue and profit growth on the back of strong consumer demand for its products, the group’s chairman Paul McDonald is set to say at the annual general meeting this morning.
“Pleasingly, we have continued to build on this positive trading momentum in the first half of the current financial year,” the statement will add.
Annualised sales at the group, which recently acquired Clearly Drinks, are expected to exceed £100m.
C&C Group has appointed Sanjay Nakra as an independent non-executive director to the board, effective from today.
He is a senior corporate finance leader with more than two decades of investment banking experience in Europe, the US and Canada. Nakra was managing director and co-group head of diversified industries for TD Securities from 2010 to 2021.
C&C chairman Ralph Findlay welcomed Nakra to the board and said: “He brings a wealth of international corporate and capital markets expertise spanning three decades which will further augment the Board’s existing capabilities. His corporate experience and insight will be invaluable as we progress our financial, operational and future strategic growth plans.”
The FTSE 100 opened up 0.9% to 8,329.05pts.
Ocado got off to a flying start with shares soaring 14% to 399p on the back of its results.
PZ Cussons made a small recovery of 1.7% to 89p as markets opened, clawing back some of yesterday’s losses when it crashed 15.2% as the devaluation of Nigeria’s currency impacted the personal care groups profits.
No comments yet