OCADO, Preliminary Results for the year ended 1 December 2024

OCADO GROUP PLC

Full Year Results for the 52 Weeks Ended 1 December 2024

Strong FY24 Results in Line with Guidance

Revenues, profits, and cash flows all improving significantly

Financial Progress

• Total Group revenue: £3.2bn (+14.1%)
  • Technology Solutions +18.1%
  • Ocado Logistics +7.6%
  • Ocado Retail (ORL) +13.9%
  • Statutory revenue: £1.2bn (FY23: 53 weeks £1.1bn)
• Total Group Adjusted EBITDA: £153.3m (FY23: £51.6m)
  • Technology Solutions EBITDA: £80.9m (margin growth to 16%) (FY23: £15.4m)
  • Ocado Logistics EBITDA: £31.1m (FY23: £30.1m)
  • ORL EBITDA: £44.6m (FY23: £10.4m)
• Statutory Loss: £(374.3)m (FY23: £(387.0)m), after adjusting items of £4.8m (FY23: £23.9m)
• Underlying Cash Outflow: £(223.7)m, £248.8m improvement (FY23: £(472.5)m)
  • Driven by higher revenues, increasing EBITDA margins, lower capex, and targeted cost control
• Strong Liquidity: £1,072m (FY23: £1,185m)
  • Cash and cash equivalents: £771.5m (FY23: £884.8m)
• Debt Refinancing: £700m of debt refinanced in FY24 to proactively manage liabilities and extend maturity profile

Operational and Strategic Progress

• Growth in Modules:
  • 12 new modules added, now at 123 live modules (FY23: 111)
  • Average live modules: 116 (FY23: 105, +10.5%)
  • 3 new CFCs launched and module drawdowns on existing CFCs
• Supporting Partners:
  • Helping partners drive long-term growth and profitability
  • First international CFCs nearing full capacity
• Re:Imagined Technology Rollout:
  • On-Grid Robotic Pick (OGRP) and Automated Frameload (AFL) contracts signed with most partners
  • Installations underway, rolling out at scale in FY25
• Ocado Logistics Efficiency:
  • OSP CFC productivity: +9.1%
  • >30% of Luton volumes picked robotically at year-end
• Ocado Retail Performance:
  • Market-leading volume-driven sales growth: +13.9%
  • Expansion to 2.9% Adjusted EBITDA margin (excluding Hatfield fees)
  • Q4 sales growth +17.5%, making Ocado the fastest-growing grocer in the UK
• Leadership Update:
  • Adam Warby appointed as Chair, joined 1 November 2024

FY25 and Mid-Term Outlook

• Technology Solutions:
  • c.10% revenue growth expected in FY25
  • EBITDA margin expected between 20-25%
• Future CFC Openings:
  • At least 7 new CFCs launching in the next 3 years
  • Expected timeline:
    • FY25: Warsaw
    • FY26: Hachioji & Busan
    • FY27: Kuki & Gyeonggi
    • Charlotte & Phoenix delayed to early FY26 following new Auto Freezer order
• Module Expansion:
  • FY25: c.5 additional modules
  • FY26/27: c.20-25 modules
  • Target for FY27: c.150 live modules
  • Growth underpinned by CFC openings, with potential for additional CFC launches
• Ocado Logistics:
  • High mid-single-digit % revenue growth expected in FY25
  • EBITDA target: c.£30m
• Ocado Retail:
  • Above 10% revenue growth expected in FY25
  • Underlying EBITDA margins of c.4%
• Cash Flow & Cost Control:
  • Underlying cash outflow: c.£200m in FY25
  • Cost reductions & capital discipline:
    • Technology & support costs reducing through FY27
    • Technology R&D allocation targeting c.20% of recurring revenues by FY27
  • Turning cash flow positive during FY26, driven by:
    • Continued EBITDA margin expansion
    • Further cost savings
    • Lower capital expenditure
• Debt & Liquidity:
  • Strong liquidity expected to be maintained
  • Active debt maturity management to ensure financial stability
• Ocado Retail Deconsolidation:
  • From April 2025, ORL will be equity accounted as a joint venture
  • No change to economic interest in ORL
  • Presented as a ‘disposal group’ in statutory accounts (further details on page 1)

Summary

Ocado Group has delivered a strong FY24 performance, with significant revenue, profit, and cash flow improvements. Strategic investments in automation, technology, and logistics efficiency have positioned the company for further expansion in FY25 and beyond. The focus on cost control, cash flow positivity, and technology rollout ensures continued growth and profitability.