OCDO.L - Ocado Group plc

LSE - LSE Delayed price. Currency in GBp
1,130.50
-30.50 (-2.63%)
At close: 4:37PM GMT
Stock chart is not supported by your current browser
Previous close1,161.00
Open1,151.50
Bid1,125.50 x 0
Ask1,093.50 x 0
Day's range1,126.00 - 1,168.00
52-week range875.00 - 1,440.50
Volume1,214,111
Avg. volume1,694,053
Market cap8.039B
Beta (5Y monthly)1.08
PE ratio (TTM)N/A
EPS (TTM)-29.40
Earnings date11 Feb 2020
Forward dividend & yieldN/A (N/A)
Ex-dividend dateN/A
1y target est985.69
  • Why I think the Ocado share price will continue to beat Tesco in 2020
    Fool.co.uk

    Why I think the Ocado share price will continue to beat Tesco in 2020

    Ocado (LON: OCDO) was the fastest-growing grocer in the UK in 2019, and I think 2020 could be even better.The post Why I think the Ocado share price will continue to beat Tesco in 2020 appeared first on The Motley Fool UK.

  • A Bet on How Future Groceries Will Be Bagged
    Bloomberg

    A Bet on How Future Groceries Will Be Bagged

    (Bloomberg Opinion) -- Ocado Group Plc, the British online grocer that’s morphed into a technology company, has always been a jam tomorrow stock. Now it’s asking shareholders to wait not just for the jam but the full afternoon tea.The specialist in automating how supermarket orders are filled on Tuesday announced that its 2019 pre-tax loss jumped to 214.5 million pounds ($277 million), from a loss of 44.4 million pounds a year earlier. Part of this was due to a damaging fire at its Andover warehouse almost exactly a year ago, which was unfortunate but Ocado has coped well with the disruption.What’s more worrying for investors is the impact of investment in its burgeoning international division, which has been striking deals to operate the online grocery businesses of chains from the U.S. to France and Japan. While that’s a credit to Chief Executive Officer Tim Steiner, who has been knocking on retailers’ doors for the the past five years, it means Ocado has an awful lot to do — and pay for. Ocado’s international technology arm could be more lucrative in the future, but for now, it’s a drain on capital. Consequently, Ocado said expenditure would more than double this year to 600 million pounds. Take away the impact of the warehouse fire, and that leaves a balance of just over 500 million pounds for building state-of-the-art warehouses that are fully equipped to pack grocery orders with limited need for humans.The majority of this will be spent on getting its automated warehouses up and running for international customers, including Casino Guichard Perrachon SA in France, Canada’s Sobeys Inc. and the U.S. chain operator Kroger Co. Some of the expenditure will be offset by expected fees from its international clients of more than 100 million pounds, but most of it is a down payment on future income once the systems are fully up and running. That doesn’t leave much scope for any unexpected hiccups in the meantime.Until those warehouses are open, Ocado cannot recognize the international revenue, but it must incur the costs. That showed in its 2019 results. Ocado invoiced fees of 81.4 million pounds to its international partners, an increase of almost 40%. But revenue from this arm was less than 1 million pounds, while it made a loss before interest, tax, depreciation and amortization of 62.1 million pounds. For this year, Ocado forecasts international revenue of less than 10 million pounds. Warehouses for Casino and Sobeys will be open for only part of the period. In the meantime, Ocado must continue its heavy spending. It had 751 million pounds in the bank at the year end, thanks to its deal to sell half of its U.K. retail business to Marks & Spencer Group Plc. It also raised 600 million pounds through a convertible bond issue after the year end. The company says this gives it plenty of headroom. But with such an investment burden over the next few years — it has also signed a deal with Aeon Co. in Japan — further calls on shareholders can’t be ruled out.And let’s not forget challenges closer to home. In September, M&S will replace Waitrose as Ocado’s supplier for its U.K. online supermarket, a massive changeover with huge execution risk.For now, investors appear confident that once the different warehouses are operational the fees will start to flow into profit and cash flow. The shares have risen by a third in the past year. Ocado’s enterprise value is currently just over 4 times forward sales, even ahead of Amazon.com Inc., on just over 3 times.This looks divorced from the reality of both Ocado’s spending needs, and the long haul to generate a return on its investment.To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • What to Watch: Warehouse fire costs Ocado, market fears ease, and UK economy flatlines
    Yahoo Finance UK

    What to Watch: Warehouse fire costs Ocado, market fears ease, and UK economy flatlines

    A daily overview of the top business, market, and economic stories to watch in the UK, Europe, and abroad.

  • Ocado steps-up spending as it counts cost of warehouse fire
    Reuters

    Ocado steps-up spending as it counts cost of warehouse fire

    British online supermarket and technology group Ocado reported a ballooning annual pretax loss, mainly due to a fire which destroyed a hi-tech flagship warehouse, and forecast a more than doubling of capital expenditure in its new financial year. Ocado on Tuesday said it expected to spend around 600 million pounds ($774 million) in 2019-20 as it prepares to open robotic warehouses for overseas partners. Ocado has transformed itself over the last two years from a domestic grocery delivery firm to a provider of online retail technology, also winning partnerships with Kroger in the United States, Coles in Australia, and most recently Aeon in Japan.

  • Alcohol-free beer and veg sales soar in 'month of moderation'
    Yahoo Finance UK

    Alcohol-free beer and veg sales soar in 'month of moderation'

    Kantar figures show shoppers having a healthier start to the year, with sales of alcohol-free drinks, aubergines and vegetarian burgers soaring at supermarkets.

  • FTSE 100 stock Ocado has soared. What’s the best move now?
    Fool.co.uk

    FTSE 100 stock Ocado has soared. What’s the best move now?

    Ocado (LON: OCDO) shares have turned £2K into £10.5K in just three years. Is the FTSE 100 (INDEXFTSE: UKX) stock still worth buying? The post FTSE 100 stock Ocado has soared. What’s the best move now? appeared first on The Motley Fool UK.

  • How you could have doubled your profits on the Boohoo and Ocado share prices
    Fool.co.uk

    How you could have doubled your profits on the Boohoo and Ocado share prices

    Both Boohoo (LON: BOO) and Ocado (LON: OCDO) have soared since flotation, but that doesn't necessarily mean they were good buys at the time.The post How you could have doubled your profits on the Boohoo and Ocado share prices appeared first on The Motley Fool UK.

  • How Much Did Ocado Group plc's (LON:OCDO) CEO Pocket Last Year?
    Simply Wall St.

    How Much Did Ocado Group plc's (LON:OCDO) CEO Pocket Last Year?

    In 2000 Tim Steiner was appointed CEO of Ocado Group plc (LON:OCDO). This report will, first, examine the CEO...

  • The Ocado share price – where next?
    Stockopedia

    The Ocado share price – where next?

    The Ocado (LON:OCDO) share price has risen by 6.62% over the past month and it’s currently trading at 1317p. For investors considering whether to buy, hold or8230;

  • Amazon Lends Deliveroo Cash While U.K. Probes Investment
    Bloomberg

    Amazon Lends Deliveroo Cash While U.K. Probes Investment

    (Bloomberg) -- Amazon.com Inc. has offered Deliveroo a loan after a U.K. probe into the food-delivery startup’s last funding round threatened a cash crunch, people familiar with the matter said.Without the backing from Amazon, Deliveroo ran the risk of running low on capital, the people said. While the size of the loan is unclear, the London-based company has significant funds to continue operating, they said, asking not to be identified because the matter is private.A spokesman from Deliveroo declined to comment. An Amazon spokesman initially referred to an earlier statement that said Deliveroo should have “broad access to investors and supporters.”Amazon led a $575 million investment into Deliveroo in May. It was frozen in a surprise move by the Competition and Markets Authority, which has said Amazon’s bid to buy a minority holding in the company had the potential to damage competition in restaurant and grocery delivery. The U.K. competition regulator said last month that it would conduct an in-depth investigation of Amazon’s approximately $500 million investment and will rule on the deal by June 11.Amazon’s loan will be converted into equity if the CMA approves the original deal, the people said. In a statement following the original publication of this story, an Amazon representative said the company continues “to comply with the Initial Enforcement Order issued in June, which requires the parties to operate separately and restricts the parties from entering into non-ordinary course agreements like a loan. Deliveroo and Amazon have been working closely with the CMA and will continue to do so.”Deliveroo had about 185 million pounds ($240 million) in cash and cash equivalents at the end of 2018, according to its latest annual report. While global sales increased 72% in 2018, its net loss before tax widened to 232 million pounds.The intervention signals Seattle-based Amazon’s commitment to expand in the restaurant food delivery market, after winding down its own service in the U.K. and the U.S., which failed to win significant market share.Amazon Prime offers grocery deliveries to major British cities within two hours, but it faces domestic competition from the likes of Ocado Group Plc, an online grocery pioneer that makes its own deliveries and licenses its technology to traditional food shops.Deliveroo Chief Executive Officer Will Shu, a former Morgan Stanley investment banker, previously told Bloomberg that he hopes to tap Amazon’s operational and logistics expertise.While Deliveroo waits for the deal to be approved by the CMA, rivals are busy consolidating. Takeaway.com NV last week declared victory in the battle for Just Eat Plc, while Germany’s Delivery Hero SE said in December it would take control of South Korea’s biggest food delivery app, Woowa Brothers Corp. Prosus NV is also looking to continue doing deals in the sector after losing out in the Just Eat deal.(Updates with Amazon comment in the fifth paragraph.)To contact the reporter on this story: Giles Turner in London at gturner35@bloomberg.netTo contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net, Amy Thomson, Nate LanxonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • The Boris Bounce Was More of a Christmas Turkey
    Bloomberg

    The Boris Bounce Was More of a Christmas Turkey

    (Bloomberg Opinion) -- Flashback to mid-December. British voters had just delivered a decisive national election victory to Boris Johnson’s Conservatives with two full weekends left before Christmas. Expectations were high that shoppers, giddy at the prospect of an end to political gridlock and repetitive threats of hard Brexit, would rush to the stores to make up for lost time in their holiday preparations and provide a much-needed boost for the country’s big supermarket chains.Anyone in the industry expecting a Boris bounce was sorely disappointed. Numbers out Tuesday show the U.K.’s largest food retailers suffered from subdued trading over the crucial Christmas and New Year’s period.Wm Morrison Supermarkets Plc said consumers remained cautious, even if there was a bit of relief following the election result. Still, it wasn’t enough to make up for belt tightening. Although customers put the same amount of Christmas fare in their baskets, the number of times they shopped was marginally down, it said.It didn’t help that a price war broke out in the run up to the holidays, with the U.K. arms of the German discount chains Lidl and Aldi slashing prices. They drew shoppers with offers, such as bags of Christmas vegetables from as little as 15 pence. Morrison was offering three British vegetables for one pound, including a 2.5 kg bag of Maris Piper potatoes, described by Chief Executive Officer David Potts as a knock-out offer. But with intense competition from the discounters, perhaps it just wasn’t knock out enough. Where consumers treated themselves, it seems they opted for Aldi’s Specially Selected mince pies.Moderating food price inflation was also a hindrance. Morrison estimated that over the past couple of months food-price inflation was close to zero. When food prices are rising, the value of supermarkets’ sales is automatically boosted.Morrison may turn out to be one of the weakest performers. But trading across the whole of the U.K. food retail market was lackluster, according to industry research group Kantar. 2019 saw the lowest rate of growth over the Christmas period since 2015, it said.What oxygen there is in the market is feeding the discount supermarkets. Excluding online-only supermarket Ocado Group Plc, Lidl was the strongest performer in the 12 weeks to Dec. 29, with sales up by 10.3%, according to Kantar. Aldi also expanded its sales by 5.9%, a slower rate of growth than in the past, but still way ahead of the so-called big four supermarkets, Tesco, J Sainsbury Plc, Walmart Inc.’s U.K. arm Asda and Morrison.Sainsbury, which reports on Wednesday, may be more upbeat than Morrison, as its stronghold is in the southeast, where there is less competition from the discounters, and it tends to outperform at Christmas. Tesco may also do better, as it has been one of the stronger performers over the past few months, and that may continue.But it provides little comfort that all of the big four saw their sales fall in the 12 weeks to Dec. 29, compared with the year earlier, according to Kantar.With U.K. wage growth still ahead of inflation, and consumer confidence showing some improvement, Johnson’s resounding victory and the certainty it appeared to provide around Britain’s departure from the European Union was supposed to boost holiday shopping. Coming in mid-December, it probably came too late to make a noticeable impact on spending on clothing and gifts, but it should have had a positive impact on supermarket shopping. That clearly didn’t happen, and that is a worrying sign for grocers as they move into what is traditionally a lean time after the holidays. This year it could be even more painful, as many consumers move out of categories such as alcohol and meat, as trends like Dry January and Veganuary gain pace.As for Morrison, the company needs to be on its guard. When food prices are rising, all of the big four supermarkets can prosper at the same time. When there is little growth, grocers need to steal sales from a weaker rival. This time last year, that was looking like Sainsbury. Now Morrison looks vulnerable. It has a strong management team, robust balance sheet, more than 85% freehold property and a developing wholesale business. Even so, it needs to get its sales growth back on track, to make make sure it does not become 2020’s Christmas feast.To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2020 Bloomberg L.P.

  • Ouch! Here’s how much £1k invested in Marks and Spencer 5 years ago would be worth now
    Fool.co.uk

    Ouch! Here’s how much £1k invested in Marks and Spencer 5 years ago would be worth now

    Paul Summers takes a closer look at just how awful an investment in Marks and Spencer Group plc (LON:MKS) has been in recent years.

  • What to Watch: Lagarde's first ECB meeting, Aramco surge, Ocado and Superdry sales
    Yahoo Finance UK

    What to Watch: Lagarde's first ECB meeting, Aramco surge, Ocado and Superdry sales

    A daily overview of the top business, market, and economic stories to watch in the UK, Europe, and abroad.

  • Ocado and Marks & Spencer joint venture reports sales rise in 'strong quarter'
    Yahoo Finance UK

    Ocado and Marks & Spencer joint venture reports sales rise in 'strong quarter'

    Ocado Retail said that retail revenue grew by 10.8% in the thirteen weeks to 1 December.

  • Reuters - UK Focus

    UPDATE 1-Britain's Ocado sees sales growth edge lower in latest quarter

    British online supermarket Ocado said on Thursday retail revenue growth slightly slowed in its latest quarter, as it saw growth in weekly orders but it was held back by flat order size. For the 13 weeks to Dec. 1, its fiscal fourth quarter, Ocado Retail's revenue rose 10.8% to 429.1 million pounds ($550.5 million). Ocado Retail is now a joint venture between Ocado and Marks & Spencer.

  • Ocado sees sales growth edge lower in latest quarter
    Reuters

    Ocado sees sales growth edge lower in latest quarter

    British online supermarket Ocado said on Thursday retail revenue growth slightly slowed in its latest quarter, as it saw growth in weekly orders but it was held back by flat order size. For the 13 weeks to Dec. 1, its fiscal fourth quarter, Ocado Retail's revenue rose 10.8% to 429.1 million pounds. Ocado Retail is now a joint venture between Ocado and Marks & Spencer .

  • Investing.com

    Premarket London: WPP Announces Buyback; Ocado/M&S JV Sales Strong

    Investing.com -- Here is a summary of the most important regulatory news releases from the London Stock Exchange on Thursday, 12th December. Please refresh for updates.

  • Bloomberg

    Amazon's Deliveroo Takeout Leaves an Unpleasant Taste

    (Bloomberg Opinion) -- It’s the worst nightmare of supermarkets and food delivery firms alike: Amazon.com Inc. turbocharging its grocery business with a network of couriers who can have grub on your doorstep within an hour.So you can see why Britain’s competition regulator has decided to challenge the e-commerce giant’s planned investment in Deliveroo, the U.K. rival to UberEats. The Competition and Markets Authority needs to tread carefully, though, as denying the funds to Deliveroo might inadvertently make it less able to compete in the food delivery business. That would be an unfortunate outcome.Back in May, Deliveroo announced a $575 million funding round led by Amazon. On Wednesday, the CMA determined that the investment might hurt competition in U.K. food delivery. It has given the companies five days to offer remedies, and it will launch a deeper probe if they don’t.The CMA’s concerns are warranted. While Amazon shuttered its British restaurant delivery operations last year, it remains interested in the market. The Deliveroo investment is a way of staying in the game; the American company is no doubt interested in the British business’s tens of thousands of riders. The two are also rivals in grocery deliveries, so forging a closer alliance would discourage them from competing. That’s a risk for delivery rival Ocado Group Plc and supermarket chains such as J Sainsbury Plc and Tesco Plc.A lengthy CMA investigation might be a problem, though, because of Deliveroo’s pressing capital requirements. A probe probably wouldn’t complete until the second quarter of next year, according to Bloomberg Intelligence analyst Aitor Ortiz. By then Deliveroo will have waited a year to receive its investment. If previous form is a guide, it needs that money. In 2018 Deliveroo burned through almost 200 million pounds ($263 million) of cash. If it has been spending at a similar clip this year, it might be nearing the bottom of its pile.There are plenty of remedies that might be acceptable to the CMA: An assurance from Amazon that it won’t try to buy Deliveroo for five years; a pledge not to integrate delivery services; and Amazon refraining from taking a board seat. If such concessions remove Amazon’s rationale for the investment, then it should back out. At least that would give Deliveroo an earlier opportunity to find different funding.The CMA will have one eye on what happened recently in the German food delivery market, where Takeaway.com NV acquired the local businesses of Delivery Hero SE, giving it more than 90% market share. But it can afford a degree of lenience in this case. It could still block any merger, should that materialize. Delaying Deliveroo’s access to funds would probably hold the company back in its market scrap with UberEats and Just Eat Plc.Regulators have been poor at anticipating the market-cornering impact of deals in the past, most famously Facebook Inc.’s acquisition of Instagram and Google’s $3.2 billion purchase of DoubleClick. Scrutinizing Amazon is right and proper, and a commitment not to integrate Deliveroo’s courier network would be a fair condition. But unless a full merger is on the table, the CMA mustn’t overdo things.To contact the author of this story: Alex Webb at awebb25@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

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