LONDON, Sept 19 (Askume) – British online supermarket Ocado Retail said it adhered to its strategy of prioritising customer growth and focusing on competitive pricing, with a strong third quarter performance helping it lift annual profits.
The company, a joint venture between Ocado Group (OCDO.L) and Marks & Spencer (MKS.L) , said the number of shoppers rose 10.3% to 1.06 million people in the 13 weeks to September 1, due to improved customer price sentiment .
Chief Executive Hannah Gibson said consumers had turned away from Britain’s biggest supermarket Tesco (TSCO.L) and discounters Aldi and Lidl to Ocado retail stores.
Ocado Retail, which sells its Ocado Own range of products alongside high-end food retailer Marks & Spencer (M&S), has a 1.8% share of the UK grocery market, according to Kantar Research Group.
“We want to do more value investing. We want to do more. We want to do more,” Gibson told reporters Thursday.
When asked how sustainable this would be, he said it would be inappropriate to discuss margin updates for trades.
Although Ocado Retail on Thursday raised its revenue guidance for the 2023-24 financial year to low double-digit growth, it maintained its outlook for an EBITDA margin of around 2.5%.
Shares in parent companies Ocado Group and M&S rose 7.4% and 1.3%, respectively.
Ocado’s retail sales grew 15.5% in the quarter, while prices fell by 0.4%, compared with a UK grocery market inflation rate of 2%.
Gibson said Ocado Retail planned to grow at a rate below inflation, adding that he was optimistic about the key Christmas trading period.
He said, “We hope that consumers will be able to celebrate a lot this year.”
There was no comment on any progress in resolving the dispute between Ocado Group and Marks & Spencer over M&S’ final payment for its stake in the joint venture .
