Ocado slumps as inflation hurts profit margins; weak first half of 2023 beckons

By Geoffrey Smith AiVIF.com -- Shares in Ocado (LON:OCDO) fell sharply at the open on Tuesday after the logistics and grocery group said its joint venture with Marks and...

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Ocado slumps as inflation hurts profit margins; weak first half of 2023 beckons

By Geoffrey Smith

AiVIF.com -- Shares in Ocado (LON:OCDO) fell sharply at the open on Tuesday after the logistics and grocery group said its joint venture with Marks and Spencer (LON:MKS) suffered from inflation and the return of in-store shopping after the pandemic in the three months through November.

Ocado Retail's revenue in the period was up only 0.3% from a year earlier, as customers pared back their orders in response to sharp rises in prices that crimped disposable income. While overall orders were up 1.9%, the average order value fell 1.3%, as a 7.6% increase in prices was offset by an 8.3% drop in the number of items per order.

Ocado Retail has traditionally been at the top end of the price range of the U.K.'s supermarkets and has consequently had less scope to raise prices further. That has put pressure on its profit margins, although it has allowed the company to raise its market share to 12.3% as of the end of 2022, from 11.7% a year earlier.

The company said it expects little or no volume growth in the first half of the current year, owing to strong comparatives from the start of 2022, when people were still more inclined to order online due to the pandemic.

That forecast appears all the weaker, given that the company posted a 15% year-on-year increase in sales at the start of its fiscal 2023 year, in the key period leading up to Christmas.

Ocado stock, which had risen strongly to start the year after positive updates from rival grocery chains, slumped over 10% in the first 20 minutes of trading.

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01-05-2024 10:45:17 (UTC+7)

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EUR/USD	1.0658	↑ Sell
GBP/USD	1.2475	↑ Sell
USD/JPY	157.91	↑ Buy
AUD/USD	0.6469	Neutral
USD/CAD	1.3780	↑ Buy
EUR/JPY	168.32	↑ Buy
EUR/CHF	0.9808	Neutral

Gold	2,295.80	↑ Sell
Silver	26.677	↑ Sell
Copper	4.5305	↑ Buy
Crude Oil WTI	81.14	↑ Sell
Brent Oil	85.62	↑ Sell
Natural Gas	1.946	↑ Sell
US Coffee C	213.73	↑ Sell

Euro Stoxx 50	4,920.55	↑ Sell
S&P 500	5,035.69	↑ Sell
DAX	17,921.95	↑ Sell
FTSE 100	8,144.13	Sell
Hang Seng	17,763.03	↑ Sell
Small Cap 2000	1,973.05	↑ Sell
IBEX 35	10,854.40	Neutral

BASF	49.155	↑ Sell
Bayer	27.35	↑ Sell
Allianz	266.60	↑ Sell
Adidas	226.40	↑ Sell
Lufthansa	6.714	Neutral
Siemens AG	175.90	↑ Sell
Deutsche Bank AG	15.010	Neutral

Mua/Bán 1 chỉ SJC # So hôm qua # Chênh TG
SJC Eximbank	8,300/ 8,500 (8,300/ 8,500) # 1,298
SJC 1L, 10L, 1KG	8,300/ 8,520 (0/ 0) # 1,510
SJC 1c, 2c, 5c	7,380/ 7,550 (0/ 0) # 540
SJC 0,5c	7,380/ 7,560 (0/ 0) # 550
SJC 99,99%	7,370/ 7,470 (0/ 0) # 460
SJC 99%	7,196/ 7,396 (0/ 0) # 386
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ʘ Giá bán lẻ xăng dầu
Sản phẩm	Vùng 1	Vùng 2
RON 95-V	25.440	25.940
RON 95-III	24.910	25.400
E5 RON 92-II	23.910	24.380
DO 0.05S	20.710	21.120
DO 0,001S-V	21.320	21.740
Dầu hỏa 2-K	20.680	21.090

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JPY	156,74	166,02
KRW	15,92	19,31
Cập nhật lúc 10:45:15 01/05/2024 Xem bảng tỷ giá hối đoái

Ocado slumps as inflation hurts profit margins; weak first half of 2023 beckons

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