Despite reporting a narrower loss in FY24, Ocado Group’s (LON: OCDO) shares tumbled on Thursday, down around 15%.
The online grocery technology firm announced a narrower statutory loss of £374.3 million for the 52 weeks ending 1 December 2024, compared to £387 million in the previous 53-week period.
The company highlighted strong results, with total group revenue rising by 14.1% to £3.2 billion, driven by growth in its Technology Solutions (+18.1%) and Ocado Retail (13.9%) divisions.
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Adjusted EBITDA also saw a substantial increase, reaching £153.3 million, up from £51.6 million the previous year.
Ocado emphasised operational progress, including the rollout of its Re:Imagined technology and growth in live modules.
However, investors appear to have been unsettled by the company’s outlook, which includes a projected underlying cash outflow of around £200 million in 2025, although this is an improvement from the previous year.
Reuters reported that the concern is related to “the rollout of robotic sites for its grocery retail partners and a lack of further technology deals.”
The company said at least seven customer fulfillment centres are going-live over the next three years, while approximately five additional modules are expected in FY25.
Looking ahead, Ocado expects Ocado Logistics to post high mid-single digit percent revenue growth for FY25 and EBITDA of around .£30 million.
Ocado Retail is expected to see above 10% revenue growth in FY25 with underlying EBITDA margins at around 4%.