UK’s Ocado Says Talking to Multiple Potential Partners in U.S
Ocado said it is holding multiple live talks with potential U.S. partners as adjusted half-year earnings fell 12%, analysts said.
- On Thursday, London-listed Ocado shares tumbled to a 13-year low, falling 14% as the company failed to show tangible progress in securing new U.S. partners for its automated grocery technology business.
- The slump follows decisions by North American partners Kroger and Sobeys to close robotic customer fulfillment centers, citing weaker-than-expected demand, which forced Ocado to reposition its automated distribution technology.
- Half-Year group revenues jumped 54% to £1.04 billion due to one-off termination payments from Kroger and Sobeys, though adjusted earnings fell 12% excluding these fees, highlighting underlying business challenges.
- CEO Tim Steiner, who committed to staying for at least 18 months, said the company holds 'multiple live engagements' with retailers, stating, 'I think our chances of winning new partners in the next six months are good.'
- Ocado maintained its forecast to turn cash flow positive next year, despite skepticism from RBC analysts regarding whether the company can compete effectively with other in-store fulfillment options.
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Britain's Ocado shares hit 13-year low on lack of progress on winning ...
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Ocado is attempting to rebuild investor confidence after revealing talks with potential new supermarket partners as it seeks to recover from setbacks in its international robotic warehouse business. The London-listed… The post Ocado fights to rebuild investor faith appeared first on London Business News
The British supermarket company 'online' and Ocado technology fell on the stock market by 18.5% after presenting the results of the first quarter with losses of 32 million pounds sterling (37.7 million euros) and amid the uncertainty generated by the relief of his CEO, Tim Steiner.
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