FTSE 100 blue-chip index leader Ocado saw its shares soar following the release of its fourth-quarter revenue and record-breaking Christmas performance.
At 1023 GMT, shares rose by 44.4 pence, or 7.2%, reaching 663.4 pence.
Ocado Retail, a joint venture between Ocado and Marks & Spencer Group, reported revenue of £609.4 million ($775.6 million) for the 13 weeks ended November 26, compared to £549.4 million in the same quarter the previous year. The sales for fiscal year 2023 reached GBP2.35 billion, representing a 7% increase and surpassing the guidance of mid-single digit growth.
With a strong focus on costs, the company achieved positive earnings before interest, taxes, depreciation, and amortization for the year ending November 26, marking a significant improvement compared to the £4.0 million EBITDA loss reported in fiscal year 2022.
Looking ahead, Ocado foresees continued growth and expects revenue for fiscal year 2024 to increase in the middle-to-high single digits. The company anticipates that positive trends in customer acquisition will drive sustained volume growth.
For the medium term, Ocado aims to maintain mid-single digit earnings before interest, taxes, depreciation and amortization margins.
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