Half Year 2025 Ocado Group PLC Earnings Call Transcript
Key Points
- Ocado Group PLC (OCDDY) reported a 13% increase in revenue, with technology solutions and logistics growing by 15% and 12%, respectively.
- The company achieved a GBP93 million improvement in underlying cash flow, driven by lower CapEx, fees from partners, and cost control.
- Technology Solutions reported a GBP73 million EBITDA with a healthy mid-20% EBITDA margin.
- Ocado Group PLC (OCDDY) has strong liquidity, with GBP1.2 billion available, including a GBP300 million revolving credit facility.
- Ocado Retail showed strong performance with 16% revenue growth, increased customer numbers, and improved order frequency.
- Ocado Group PLC (OCDDY) faces challenges in becoming cash flow positive by FY26, requiring disciplined capital allocation and lean operations.
- The company has seen increased finance costs due to higher coupons on debt raised over the past 12-18 months.
- Ocado Retail's service delivery costs rose by 24% year-on-year, impacted by national living wage and minimum wage increases.
- The deconsolidation of Ocado Retail resulted in a GBP9 million loss, reflecting challenges in maintaining profitability.
- Ocado Group PLC (OCDDY) is managing debt maturities, with GBP450 million due over the next 2.5 years, requiring strategic planning to avoid turning debt current.
Well, good morning everyone. I was sometimes used to the voice of God announcement when you get up on stage, but it was just quiet whispers from Nick, but it's good to be back here. My first time to be with you all was at the fiscal year '24 presentation.
Well, I was still relatively new. Four or five months have passed since then, so I'm delighted to be here to share some reflections over the last four or five months. Spent time, as you'd expect, with colleagues, partners, and shareholders listening to the various perspectives of you all, and we've also spent time as a Board looking at Ocado Group strategy, so it's really with that -- that I want to spend just a brief moment ahead of the presentation sharing some of those ins -- oh, I was in charge of my own clicking, you see, Nick, it's -- I've done this before.
I'll let you do it if you want to do it.
(inaudible - microphone inaccessible)
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