Ocado delivers best ever Christmas numbers to end 2023 in the black

In response to Ocado’s retail update this morning, Adam Vettese, analyst at eToro said:

In what was a 2023 of mixed fortunes for Ocado, having said only in November it could take 3+ years for the online grocer to reach its potential, a very strong Q4 has seen them reach almost one million customers and grow revenue by 10.9%.

In this current economic climate they have had to price match some of the big guns like Tesco to compete and with a very cash intensive business they are going to have to hope they can retain and grow this customer base further. With this being a joint venture with M&S, it could well be possible that consumers treated themselves to a luxury Christmas haul and may revert to the norm now they are feeling the January pinch.

Ocado has said they will meet their forecast of returning to positive earnings for 2022/23 and given we are starting to see grocery inflation cool as well as improvements in order delivery they may well have more chance of shoppers sticking with the habits that saw them have such a successful festive period.