Ocado Group (LON:OCDO) Announces Quarterly Earnings Results

Ocado Group (LON:OCDO) released its earnings results on Thursday. The company reported GBX (3.90) earnings per share (EPS) for the quarter, Digital Look Earnings reports. Ocado Group had a net margin of 29.33% and a return on equity of 24.47%.

Here are the key takeaways from Ocado Group’s conference call:

• Ocado said it remains on track to become cash flow positive in the second half of FY2026, with full-year cash flow positivity expected in FY2027 after major organizational changes and cost cuts.
• Underlying business momentum remained strong, with international volumes up 27% and Ocado Retail revenue up 15%, supported by continued customer growth and improved order frequency.
• The company highlighted several commercial wins and partner milestones, including Asda, a new U.S. customer, and the upcoming launch of its first South Korea CFC with new automation features such as Auto Freezer and dawn delivery.
• Management said the commercial pipeline has become more active and more U.S.-weighted following the end of exclusivity in key markets, and that Ocado is now selling broader solutions beyond CFCs, including store-based automation and AMRs.
• While several execution issues remain, including delays to some CFC openings and the fact that store-based automation is still in pilot/prototype stages, management said these do not change its longer-term strategy or guidance.

Ocado Group Stock Down 17.7%

Shares of OCDO stock traded down GBX 31.50 during mid-day trading on Thursday, hitting GBX 146.20. The company’s stock had a trading volume of 26,637,744 shares, compared to its average volume of 21,902,838. The company has a debt-to-equity ratio of 131.70, a quick ratio of 2.81 and a current ratio of 2.00. Ocado Group has a 52-week low of GBX 140.30 and a 52-week high of GBX 397.90. The stock has a market cap of £1.22 billion, a price-to-earnings ratio of 3.00 and a beta of 2.39. The business has a 50-day moving average price of GBX 191.51 and a 200 day moving average price of GBX 209.17.

Analyst Ratings Changes

Separately, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a GBX 310 price target on shares of Ocado Group in a research report on Monday, June 1st. Two research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Ocado Group presently has a consensus rating of “Buy” and an average price target of GBX 373.50.

Ocado Group Company Profile

Ocado Group is a UK based technology company that provides end-to-end online grocery fulfilment solutions, known as the Ocado Smart Platform, to some of the world’s largest grocery retailers and holds a 50% share of Ocado Retail Ltd in the UK in a Joint Venture with Marks & Spencer. OSP comprises access to Ocado’s physical infrastructure solutions, running highly efficient warehouse operations for the single pick of products, together with the entire end-to-end proprietary software applications required to operate a world class online grocery business.