Warehouse fire deepens Ocado loss in 2019

By James Ridler contact

- Last updated on GMT

Ocado reported a pre-tax loss of £214m in 2019
Ocado reported a pre-tax loss of £214m in 2019

Related tags: Finance

Online retailer Ocado has reported a £214m pre-tax loss for the year ended December 2019, after costs resulting from a fire at its Andover customer fulfilment centre ate into profits.

While the group saw retail revenue grow 10.3% compared to last year (£1.6bn from £1.46bn), earnings before interest, tax, depreciation and amortisation were down 27.2% to £43.3m.

This was further impacted by depreciation and impairment costs of £235.1m, the bulk of which was attributed to the £111.8m of costs including the write-off of assets lost in the Andover fire – offset by £23.8m of insurance proceeds recognised to date.

Strong momentum

However, chief executive officer Tim Steiner said the results showed a strong momentum in the business, despite the impact of the Andover fire, and said the underlying performance of Ocado Retail and the successful growth of Ocado Solutions were very encouraging.

“Our progress over the last 12 months – which includes signing our eighth and ninth Solutions clients, Coles in Australia and Aeon in Japan, and successfully maintaining strong growth post-Andover – has demonstrated many of Ocado Group’s most important characteristics: resilience, innovation, focus and execution,”​ he continued.

“It is these qualities that will enable us to continue to develop the Ocado Smart Platform to meet the evolving needs of our partners at the cutting-edge of online grocery retail.”

International expansion

Last year also saw Ocado branch out internationally, offering its services to support Canadian retailer Sobeys’ and French retailer Groupe Casino’s own robotic customer fulfilment centres. February last year also saw the online retailer enter into a 50/50 joint venture with Marks & Spencer (M&S).

Steiner added: “The landscape of grocery retailing globally is changing. We are excited to be able to play a leadership role through Ocado Retail, our joint venture with M&S, and through our Solutions partnerships, as we fulfil our mission of ‘changing the way the world shops’.”

Meanwhile, meat processor Tulip reported a loss of £73.9m for the year ended 30 September 2019,​ as the business started on its road to recovery for the full year 2020.

Related topics: Supply Chain, Industry 4.0, Operations

Related news

comments

Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Follow us

Featured Events

View more

Products

View more

Webinars