Ocado Revenue Rises on One-Off Fees but Shares Fall 15% After Kroger and Sobeys Closure Plans

Ocado recorded group revenues of £1.04 billion for the six months to 31 May, a 54 percent increase from the prior year, The Independent reported. The rise stemmed mainly from £354 million in fees linked to planned closures of robotic warehouses operated for Kroger in the United States and Sobeys in Canada. Underlying revenues rose 1 percent after excluding those one-time items.

Earnings before tax reached £17 million, compared with a £173 million loss in the same period a year earlier. Ocado Retail, the UK joint venture with Marks & Spencer, posted a 15 percent revenue increase and stronger earnings. One-off fees from the closure plans lifted both revenues and earnings, The Independent reported.

Ocado stated it maintains live engagement with prospective partners in the United States. Several exclusivity agreements have expired, allowing the company to pursue multiple new grocery clients across North America, Europe and the Asia Pacific region.

Chief executive Tim Steiner said the first half featured accelerating international volume growth, strong commercial momentum, improved organisational efficiency and rigorous cost discipline.

Steiner added that the company has been re-engaging retailers in major grocery markets since the start of the year, with particular focus on the United States and an evolved portfolio of technology solutions. The update followed his announcement that he will remain chief executive until December 2027, with succession plans to be finalised at the start of the 2027-28 financial year on 1 December 2027.

Shares in Ocado fell 15 percent on Thursday morning, The Independent reported.