Online grocery giant Ocado has reported improved revenues driven by improvements in its retail and technology businesses.
The retailer and automation giant which is linked to Marks and Spencer, said total group revenue hit £2.8bn in 2023, up 9.9 per cent year on year.
This was largely due to Ocado’s thriving retail division which grew seven per cent in the same period to £2.36bn. Revenue from its technology solutions jumped significantly to £420.5m in 2023 – an increase of more than 44 per cent since 2022.
Over the past year, Ocado has opened three robotics fulfilment centres in Japan, Canada and Luton in the UK, allowing it to increase sales and delivery capacity.
Chief executive Tim Steiner said: “Our technology is transforming the way people shop for food as we help some of the world’s best and most innovative retailers set the bar for excellence in grocery ecommerce worldwide.”
In 2024, the company is expecting to generate “attractive returns” from the Ocado Smart Platform, a logistics solution that enables the company to grow its order book.
“This is, for now, the primary focus of the business and we are encouraged by the progress we are making in helping our partners get the best out of the technology that we have successfully installed for them.,” explained Steiner.
On Monday, shares in the firm fell by over six per cent following a report that its retail partner, Marks and Spencer is holding back a multi-million pound payout due to missed performance targets. Ocado and M&S joined forces five years ago to create the digital grocery brand, in a £750m tie-up.
Shares in Ocado are down by around three-quarters from their lockdown peak in early 2021.