Half Year 2024 Ocado Group PLC Earnings Call Transcript
Key Points
- Strong group revenues up 13% and EBITDA nearly tripled to GBP71 million.
- Ocado Retail has resumed its position as the UK's fastest-growing grocer.
- Significant improvement in underlying cash flow, up GBP101 million in the first half.
- Successful deployment of Re:Imagined technologies and growing OIA pipeline.
- Liquidity remains strong with GBP747 million of cash and an undrawn revolving credit facility of GBP300 million.
- Ocado Group PLC (OCDDY) still operates at a loss, although the trend is improving.
- High reliance on future module rollouts and partner success for achieving cash flow positivity by 2026.
- Some CFCs are still in the early stages of utilization, leading to variable performance across sites.
- Challenges in achieving consistent profitability across all client sites.
- Ongoing need for significant capital expenditure, although reduced from previous guidance.
Very good. Good morning, everyone. Welcome to Ocado's first-half results.
Tim and Stephen are going to lead you through the operational and the financial milestones for the period. And then we'll go on shortly thereafter to talk about the progress that we've made in improving cash flow and growing profitability, not only in technology solutions, but in retail as well; and then how we've been improving in the rolling out of CFCs around the world.
What we're pleased to be able to say, again, is that online is the fastest-growing grocery retail channel. And Ocado, as you will know, we have proven technology, constant innovation that we can feed into clients, those clients looking to find solutions for growing e-commerce.
As a Board, what we've been particularly encouraged to see over the past half year and before that, is the work we are doing to help our clients manage that tough but crucial transition to being a growing profitable multichannel retailer. And that transition actually
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