Ocado sticks to guidance despite mixed first half

Ocado sticks to guidance despite mixed first half Published: 07:36 16 Jul 2026 BST Ocado Group PLC (LSE:OCDO) reiterated its target to become cash flow positive in the second half of this year, despite it worsening in the first half. The FTSE 250 provider of warehouse automation systems for supermarkets reported stronger first-half trading, including renewed interest from retailers, but underlying cash outflow worsened to £147 million from £108 million a year earlier, excluding the impact of customer fulfilment centre closures. Revenue rose 54% to £1.04 billion, although that included one-off termination payments and accelerated revenue recognition from the closure of facilities for North American clients Kroger and Sobeys. Excluding those, revenue increased only 1% to £684 million. Underlying earnings (adjusted EBITDA) increased to £432 million from £92 million, again boosted by the closure impacts. Excluding those items, adjusted EBITDA fell 12% to £81 million. Ocado Retail, its UK joint venture with Marks and Spencer Group PLC (LSE:MKS) , continued to outperform the wider grocery market, with revenue increasing 15% and adjusted EBITDA more than doubled to £73 million. Overall, the group said it remained on track to deliver around £150 million of cost savings, with the Technology Solutions arm expected to see six robot-run warehouses go live for customers over the next two to three years, including sites in Busan for South Korea's Lotte's, Tokyo for Japan's AEON this year. Chief executive Tim Steiner said: "The first half of the year has seen accelerating international volume growth, strong commercial momentum, improved organisational efficiency, and rigorous cost discipline." He added: "As we continue to focus on delivering growth and efficiency, we will achie...