Shares of the FTSE 100-listed Ocado Group (GB:OCDO) trended higher on Tuesday after the company announced a positive turnaround in its joint venture Ocado Retail’s Fiscal 2023 earnings. Strong trading performance and cost management efforts led to a positive EBITDA for the Fiscal year. Moreover, Ocado Retail delivered solid sales in the Christmas season. The Ocado share price was up by almost 5% as of writing.
Don't Miss out on Research Tools:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Ocado Group is a technology-driven company recognized globally for its expertise in software and robotics platforms. Ocado Retail is a joint venture with equal ownership shared between Ocado Group and Marks and Spencer PLC (GB:MKS).
Ocado Retail’s FY23 Trading Update
In Q4 FY23, Ocado Retail’s revenue increased 10.9% to £609.4 million, registering its highest-ever sales during the Christmas period. It also marks the fourth consecutive period of quarter-on-quarter growth.
Additionally, Ocado Retail experienced a 5.9% growth in active customers to 998,000. The total sales volume grew by 4.8% to 232.2 million during the 13-week period, which ended on November 26, 2023.
Moving forward, the company expects sustained volume growth in FY24. However, it expects the average selling price to be impacted by easing food price inflation. Consequently, the overall revenue growth in FY24 is projected to be in the “mid-high single digits.”
What is the Future of Ocado Stock?
According to TipRanks, OCDO stock has received a Hold consensus rating. The stock has three Holds, two Sells, and one Buy recommendation from analysts. The Ocado share price forecast is 605.37p, which is 8.5% below the current price level.
