Thu Sep 19 08:02:05 UTC 2024: ## Ocado Retail Soars on Strong Q3 Performance, Upgrading Revenue Forecast

**London, UK** – Shares of Ocado Retail (LON:OCDO) surged by 14.3% today after the company reported a strong trading update for the 13 weeks ending September 1st. The joint venture between Ocado Group plc and Marks & Spencer Group plc saw a significant 15.5% year-on-year increase in retail revenue, reaching £658 million.

The growth was driven by a 15.4% increase in total item volumes and a 14.7% rise in average weekly orders, reaching 437,000. Ocado Retail also experienced a 10.3% increase in its active customer base, reaching 1.06 million, attributed to improved slot availability and enhanced service offerings.

Despite a slight decrease in average selling prices, average basket value remained steady at £120.97, demonstrating Ocado’s ability to maintain customer appeal while investing in price competitiveness. The company’s strong Q3 performance has led it to upgrade its full-year revenue guidance, now expecting low double-digit percentage growth for FY24, compared to its previous forecast of mid-high single-digit growth.

Analysts are optimistic about Ocado Retail’s continued momentum, citing its ongoing investments in pricing and proposition as key drivers. However, some remain cautious regarding the company’s mid-term Technology Solutions targets. Despite the positive news, Ocado Retail maintains its FY24 EBITDA margin guidance at approximately 2.5%, excluding the annual Hatfield fees of £33 million.

With a growing customer base, improved service offerings, and a strong technological foundation, Ocado Retail is well-positioned to continue capturing market share in the competitive UK grocery landscape. The company’s upgraded revenue outlook signals optimism about its ability to maintain its strong momentum for the remainder of the year.

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