Ocado Group, the online grocer and retail-technology specialist, has announced its expectation of further revenue growth in fiscal 2024, following a successful Christmas performance. The company anticipates that revenue growth for the year ending November 26 will be in the middle-to-high single digits.
Ocado Group attributes its positive revenue outlook to the ongoing momentum it has experienced in customer acquisition, which is expected to drive sustained volume growth. However, it acknowledges that the growth in average selling price may be impacted due to its investment focus on value and the subsiding of food price inflation.
Moreover, Ocado Group aims to achieve mid-single digit earnings before interest, taxes, depreciation, and amortization margins in the medium term.
In terms of its joint venture with Marks & Spencer Group, Ocado Retail, revenue for the 13 weeks ending November 26 saw a significant rise to £609.4 million ($775.6 million), compared to £549.4 million during the same quarter last year. This positive result contributes to the overall sales growth of 7% for the fiscal 2023 period, surpassing the initial guidance of middle-single digit growth.
Ocado Group’s record-breaking performance during the peak Christmas trading period further reinforces its optimistic outlook for the future.
