Britain’s Ocado counts cost of fire at flagship warehouse

FILE PHOTO: Part of the Ocado CFC (Customer Fulfilment Centre) is seen in Andover, Britain May 1, 2018. Picture taken May 1, 2018. REUTERS/Peter Nicholls/File Photo

LONDON (Reuters) – British online supermarket and technology group Ocado reported ballooning annual pretax losses and a 27% fall in core earnings, mainly due to a fire which destroyed a hi-tech flagship warehouse in Andover, southern England.

Ocado, whose shares have risen 35% over the last year due to overseas technology deals, said on Tuesday its loss before tax widened to 214.5 million pounds ($276.8 million) in the year to Dec. 1 2019 versus 44.4 million pounds in 2017-18.

The loss reflected exceptional charges of 94.1 million pounds relating to the write-down of the Andover site.

Ocado made earnings before interest, tax, depreciation and amortization (EBITDA) of 43.3 million pounds ($55.9 million), versus a re-stated 59.5 million pounds for 2017-18.

That outcome, which also reflected accounting changes and the costs of share schemes, was broadly in line with analysts’ consensus forecast.

For the 2019-2020 year Ocado forecast retail revenue growth of 10-15% and international technology fees of 40% or more.

It forecast EBITDA from retail above its revenue growth. However, EBITDA from UK solutions & logistics and from international solutions was forecast to decline.

Prior to Tuesday’s update analysts’ average forecast for 2019-20 EBITDA was 33 million pounds.

Reporting by James Davey; editing by Kate Holton

Get more stuff like this

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Share with your friends!

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *

Get more stuff like this
in your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.