LONDON (Reuters) -British online supermarket Ocado Retail said on Tuesday it would meet its forecast of a return to positive earnings for its full 2022/23 year after revenue growth accelerated in its fourth quarter.
The business, a 50:50 joint venture between Ocado Group and Marks & Spencer, said its revenue rose 10.9% in the 13 weeks to Nov. 26 – a fourth consecutive period of quarter-on-quarter growth and an increase on the 7.2% reported for the third quarter.
Ocado Retail said it benefited from a 5.9% rise in active customers to 998,000, a 4.8% increase in volumes, or number of items sold, and a 3.8% rise in average basket value.
“Our trading performance, and our focus on costs, has translated through to our bottom line, returning to positive EBITDA for the full year,” the joint venture said. It made a loss of 4 million pounds in the 2021-22 year.
Ocado Retail also said it hit its highest ever level of sales over the peak Christmas trading period. Overall sales increased 7% between Dec. 20 and Dec. 24.
For the new 2023/24 year, the joint venture forecast revenue growth in the “mid-high single digits”.
(Reporting by James Davey; editing by Sarah Young)
