Ocado delivers first profit of £7.5m but cuts bonuses by 40 per cent
Grocery delivery service Ocado reported its first profit yesterday, of £7.5m for 2014, up from the £5.1m loss in 2013, although top executives had their bonuses slashed by around 40 per cent.
Executive directors only reached half their targets, resulting in total bonuses paid dropping nearly £800,000 compared to 2013 totals.
Group sales went up by 20.4 per cent to £1.03bn, £972m of which were retail sales, while revenue also grew, by 19.8 per cent to £949m.
Chief executive Tim Steiner, said: “We believe the grocery market remains subdued. Moreover, during the period there has been more emphasis placed on price initiatives in the market by the major supermarket groups, to counter the growing threat from discount operators which is exacerbating the decline in supermarket store sales.”
Steiner said these initiatives had greatest impact on prices of “certain key value items”.