Ocado earnings up 79% in first half as Morrisons deal ramps up

1st Jul 2014 07:36

- Revenue up 20.7%, EBITDA up 79%- Moved into the black at PBT line- Encouraging start to Morrisons partnership - Online grocery market growth slower than recent yearsOnline grocer Ocado claimed it outperformed its key online grocery competitors as it delivered a considerable rise in earnings despite the intensifying price competition from traditional supermarkets and its own increased internal investment.Thanks to its new partnership with Morrisons.com, gross retail sales climbed 15.6% to £442.4m and earnings before interest, tax, deprecation and amortisation jumped 78.6% to £34.3m, with a move into the black at the profit line with £7.5m before tax.Chief Executive Tim Steiner said the Morrisons launch was "particularly encouraging" and could lead to further such agreements. He noted that while the online grocery shopping continues to expand faster than the total market, it currently is growing at "a slower rate than recent years".He reiterated the board's expectation that Ocado will continue growing "broadly in line with, or slightly ahead of, the online grocery market". -- More to follow -- OH