|Bid||1,155.50 x 0|
|Ask||1,158.00 x 0|
|Day's range||1,132.50 - 1,182.00|
|52-week range||730.60 - 1,440.50|
|Beta (3Y monthly)||1.57|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||N/A (N/A)|
|1y target est||985.69|
Supermarket chain Kroger Co. and Ocado Group Plc, a UK0based online grocery retailer, said Thursday they are investing $55 million in a fulfillment center in Forest Park, Georgia that will create more than 400 new jobs. The center will be an automated warehouse facility with digital and robotic capabilities and will be replicated across the U.S. Last month, Kroger broke ground on the first such center, located in Monroe, Ohio. The Georgia facility will occupy 375,000 sq. ft. and is expected to be operational by 2021. Kroger shares were not active premarket, but have fallen 21% in 2019, while the S&P 500 has gained 19%.
British retailer Marks & Spencer is targeting a doubling of its 6 billion pound ($7.5 billion) food business, driven by its new joint venture with online supermarket Ocado, chairman Archie Norman said on Tuesday. M&S bought a 50% share in Ocado's UK retail business for an initial 562.5 million pounds ($701 million) in February, which will provide M&S with a home-delivery service from September 2020 at the latest. "Our ambition is to double the size of our food business and Ocado sets us well on the way to doing that," Norman told investors at M&S's annual shareholders' meeting, held at Wembley Stadium in London.
British retailer Marks & Spencer is targeting a doubling of its 6 billion pound food business, driven by its new joint venture with online supermarket Ocado , chairman Archie Norman said on Tuesday. M&S bought a 50% share in Ocado's UK retail business for an initial 562.5 million pounds in February, which will provide M&S with a home-delivery service from September 2020 at the latest. "Our ambition is to double the size of our food business and Ocado sets us well on the way to doing that," Norman told investors at M&S's annual shareholders' meeting, held at Wembley Stadium in London.
London markets remain muted as investors sit tight ahead of further clues on the Federal Reserve’s plan for interest rates.
(Bloomberg Opinion) -- Ocado Group Plc is fond of making excuses for disappointing grocery sales growth. In the past, it has blamed everything from a shortage of drivers in the run up to Christmas to its health-conscious customers ordering less juice.So it was reassuring that the company was able to cope with a devastating fire that destroyed a distribution center in Andover, England in February better than the market had feared. If it had needed an excuse for any of its recent results this disaster would have provided a legitimate one, so the company has done well to minimize the impact.It said Tuesday the incident shaved 2 percentage points off of retail sales growth in the first half of the financial year to June 2, even though it lost 10% of its delivery capacity.Ocado maintained its outlook for full-year expansion in its retail sales of between 10% to 15%, and the shares duly rose 10% on the news. This deserves credit because the fire has created a heavy financial toll.The company took a 99 million pound exceptional charge in the period, primarily from writing off the value of the destroyed assets. Though this will be offset by insurance recoveries, as rebuilding the warehouse will be fully covered, Ocado’s first-half loss rose from 13.6 million pounds to 142.8 million pounds. It also cautioned that the fire would reduce its full-year Ebitda by 15 million pounds, while the cost of management incentive plans would cut it by 10 million pounds.Analysts at Barclays said this implied full-year Ebitda of about 20 million pounds, compared with estimates of about 45 million pounds previously.This financial impact of the fire is unhelpful, but hardly surprising, given the loss of a state-of-the-art warehouse. Tuesday’s report has presented investors with a lot to chew over, but it adds up to a lot of noise. None of it changes the fundamental investment case for Ocado.This depends on two things. First, it must also make a success of its new deal with Marks & Spencer Group Plc. That means a seamless replacement of Waitrose, its current partner, with M&S, and migrating customers used to Waitrose products to the new arrangement. This is challenging, though not insurmountable. Second, it must continue to win contracts to run the online grocery arms of other retailers around the world and convert these into profit. It has certainly racked up the deals over the past year or so. But that is yet to translate into meaningful earnings growth. It will soon receive a 562.5 million pound cash payment from M&S, and this should ease worries about whether it has adequate capital to invest in the new partnerships. While Ocado’s technology arm is potentially lucrative, it is work in progress. The group is also facing competition from rivals including Today Development Partners, a company co-headed by one of Ocado’s original founders, which has signed a deal with Waitrose.The shares are up about 45% since confirmation of the M&S partnership. On an enterprise value to forward sales basis, they trade on 4.3 times, putting it ahead of Amazon.com Inc.Investors are clearly assuming a smooth delivery of its future plans. But as any long-time follower of Ocado knows, with the online supermarket turned tech titan, that is far from guaranteed. Progress is just as likely to get stuck in the warehouse.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Jennifer Ryan at firstname.lastname@example.orgThis 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©2019 Bloomberg L.P.
German shares drove Europe lower on Tuesday after a profit warning from chemicals giant BASF citing trade friction put chemical and auto makers on the back foot, while a slump in copper prices knocked mining stocks. The pan-European STOXX 600 index closed 0.5% lower with most major indices in the red but Madrid's IBEX managed to outperform.
Britain's mid-cap index fell for the third straight session on Tuesday amid a deteriorating economic outlook and Brexit tensions, while online grocer Ocado jumped on the FTSE 100 after confirmed its annual forecast. The main index fell 0.2% and the mid-cap FTSE 250 shed 0.6%, as a hefty profit warning from German chemicals giant BASF rocked several industrial companies.
(Bloomberg) -- Ocado Group Plc shares surged after the U.K. online grocer reassured investors that its strategy is on track despite a fire that leveled one of its warehouses earlier this year.The company maintained its full-year sales guidance even as it estimates the blaze in February will cut earnings by 15 million pounds ($18.8 million). The shares gained as much as 7.7% in London, the most in more than four months.Though the incident at the automated facility in Andover, England, trimmed retail sales in the first half, the company still expects full-year growth of as much as 15%. Ocado has removed some decorative parts from robots after saying an electrical fault that ignited a plastic lid on one of the machines caused the fire.“We’ve taken some steps to dramatically reduce the effects of it happening again,” Chief Executive Officer Tim Steiner said by phone.The company said it made further progress in its shift from e-commerce sales to becoming more of a software and robotics platform. Revenue from grocery partners that have licensed its technology rose by more than one-third from a year earlier. Ocado has struck technology deals with the likes of Kroger Co. in the U.S., and Steiner said the company is eyeing additional agreements in other countries.‘Encouraging Execution’“Qualitative updates are encouraging,” Numis analysts wrote in a note, pointing to “encouraging execution on current solutions deals.”Ocado formed a joint venture with Marks & Spencer Group Plc in February to operate food deliveries in the U.K. and recently invested in non-grocery ventures including automated meal preparation and vertical farming.Another U.K. partner, Wm Morrison Supermarkets Plc, agreed to free some of its warehouse capacity to help Ocado after the Andover fire. This will slow revenue growth in its solutions business, given the loss of fees and higher fixed costs, Ocado said. Morrison also loosened its pact with the online grocer in May to strengthen its partnership with rival Amazon.com Inc.To contact the reporter on this story: Ellen Milligan in London at email@example.comTo contact the editors responsible for this story: Eric Pfanner at firstname.lastname@example.org, Thomas MulierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Britain's Ocado, the online supermarket and technology company, reported a 46% fall in first-half core earnings, reflecting the impact of a fire at a flagship robotic warehouse as well as accounting changes and the cost of share schemes. Despite the earnings fall Ocado, whose shares have increased 48% so far this year, said on Tuesday it was confident about its outlook. Ocado made adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 18.7 million pounds ($23.4 million) in the 26 weeks to June 2 versus a restated 34.8 million pounds in the same period last year.
British online supermarket and technology company Ocado reported a 46% fall in first-half core earnings hurt by a fire at its flagship distribution centre but sounded a confident note on the outlook for sales of its warehouse robotics and software. Ocado provides UK and international retailers with the infrastructure and software to develop their own online grocery businesses to compete with the likes of Tesco and Amazon. While Ocado's retail business holds just a 1.3% share of Britain's grocery market, its warehouse technology has powered a 8.3 billion pound ($10.4 billion) stock market valuation.
British online supermarket and technology company Ocado reported a 46% fall in first-half core earnings hurt by a fire at its flagship distribution centre but sounded a confident note on the outlook for sales of its warehouse robotics and software. Ocado provides UK and international retailers with the infrastructure and software to develop their own online grocery businesses to compete with the likes of Tesco and Amazon . While Ocado's retail business holds just a 1.3% share of Britain's grocery market, its warehouse technology has powered a 8.3 billion pound stock market valuation.
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(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Amazon.com Inc. is facing an initial review by the U.K. competition regulator into its bid to buy a slice of fast-growing food delivery startup Deliveroo.The Competition and Markets Authority on Friday said it has “reasonable grounds” to believe that Amazon and Deliveroo have either ceased to be separate businesses, or will merge in the near future, according to the enforcement order posted online on Friday.The initial review means that Amazon won’t be able to close the deal and that both companies will have to continue acting as independent entities.While reviews into mergers by the CMA are relatively common, it is unusual for the regulator to examine acquisitions of minority stakes. In May Amazon said it would invest in a $575 million funding round in Deliveroo to help the London-based startup expand its technology team and network and compete against the likes of Just Eat Plc and Uber Technologies Inc. in Europe’s fiercely competitive food delivery industry."Deliveroo and Amazon have been working closely with regulators to obtain regulatory approvals," said a Deliveroo spokesman in a statement.The U.K. food delivery marketplace -- Deliveroo’s home market -- is arguably one of the most competitive. Amazon closed down its London-focused food delivery business last year. Amazon has signaled its growing ambitions in the U.K. with Prime Now, which offers deliveries to major British cities within two hours.But it faces stiff domestic competition from the likes of Ocado Group Plc, an online grocery pioneer that licenses its technology to the likes of Kroger Co. and aims to halve that time with a service called Zoom.London-based Deliveroo has raised $1.5 billion in venture capital since it was founded in 2012 and its self-employed riders have become a familiar sight in many large cities. It now wants to reach half of the U.K.’s population of 65 million by the end of the year, up from the 33% who can currently use its mobile app, said Chief Executive Officer Will Shu.In a recent interview with Bloomberg, Shu, a former Morgan Stanley investment banker, said that with Amazon’s recent investment in Deliveroo, he hopes to tap the e-commerce giant’s operational and logistics expertise. “Amazon in my view are the best operators in the world and, to the extent we can learn from them and what they’ve been able to build over the last 20 years, that is what I’m most excited about,” he said.The CMA notice stated that, during the review, there should be no integration of the technology between the Deliveroo or Amazon businesses, without consent from the regulator.Douglas Gurr, who is the head of operations for Amazon UK, was appointed as a director of Deliveroo’s holding company on May 16 this year, according to a company filing.(Updates with added context, Deliveroo statement.)To contact the reporter on this story: Stephanie Bodoni in Luxembourg at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, Adveith NairFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
BERLIN/CHICAGO, June 20 (Reuters) - Kroger Co has room to improve on sales and is looking to its Deluxe Unicorn Swirl ice cream and other store-brand products to boost growth, Chief Executive Rodney McMullen said on Thursday. Multicolored, sparkly ice cream is an unlikely battleground in U.S. grocery stores. "We know we can do better when it comes to identical sales results," McMullen told analysts after Kroger posted quarterly same-store sales below Wall Street estimates, sending its shares down 2.5%.
Britain's food and grocery industry is forecast to grow by 12.5% to 217.7 billion pounds ($272.8 billion) by 2024, driven by the online and discounter channels, researcher IGD said on Thursday. It said online will be the fastest growing channel, with growth in value of 43.8% to 16.7 billion pounds in the next five years, just ahead of discounters, which are forecast to grow 40.2% to 34.3 billion pounds. IGD said online's market share will increase to 7.7%, while discounters' will rise to 15.8%.
Ocado has sold off a beauty business to high street retailer Next following the grocery delivery company's joint venture with Marks & Spencer. Beauty store and website Fabled by Marie Claire has been acquired by Next in a deal that will be worth about £8m to Ocado. The high street retailer paid a small upfront fee and will pay at least £3m as part of an earnout agreement, giving Ocado a cut of sales for the four years to 2024.
Fabled by Marie Claire, founded in 2016, trades online through Fabled.com and through a dedicated premium beauty retail store in London, operated by Marie Claire Beauty Ltd. Next has bought Marie Claire Beauty with an agreement of an earn-out based on sales in each of the four years ending January 2021 to January 2024, with a minimum guaranteed payment of £3 million, Ocado said. "The recent JV with M&S has meant that the centre of gravity at Ocado Group has shifted.
Britain's main index slipped on Wednesday, weighed down by miners after Rio Tinto cut its forecast for shipments from an Australian region, while sterling's gains ahead of Bank of England meeting dragged down exporters. The FTSE 100 index dipped 0.5%, its worst fall this month, while the FTSE 250 midcap index was down 0.3%.
M&S has revealed it only received 85% of take-up from shareholders for its £600m fundraising call to bankroll its deal with Ocado. It means underwriters Morgan Stanley, HSBC and BNP Paribas are having to raise about £90m by attempting to sell the unsold new shares or acquire the stock themselves. It is the first time the FTSE 100 stalwart has taken part in such a fundraising effort and the 85% take-up is below the average 91% achieved by comparable rights issues over the past 12 months.