Ocado outlook upbeat despite losses

 
Suzie Neuwirth

ONLINE grocer Ocado today unveiled pre-tax losses of £3.8m in its half-year results, down from profit of £0.2m in the first half of 2012.

However, the firm – which recently announced a tie-up with supermarket chain Morrisons – saw its revenues rise 15.6 per cent to £355.9m.

Ocado’s chief executive Tim Steiner said that the first half of 2013 had been “extremely busy” in terms of growing the company and that the Morrisons deal would “provide additional revenue and profit streams” going forward.

“In addition to the direct benefits to Ocado of this agreement, we consider it to be a strong validation of Ocado's operating model, providing a solution for the challenges faced by grocery retailers worldwide as the online channel continues to increase in importance,” he said.

“This agreement also gives an indication as to the commercialisation potential of our IP and operating knowledge, providing a template for future deals.”