Ocado Reports Another Loss as Shares Slide
Grocery delivery firm Ocado is facing renewed investor concerns, with its shares tumbling 16% this morning after reporting yet another annual loss.
The company posted a statutory loss of £373m for the 12 months ending 1 December 2024, a slight improvement from the £387m loss in 2023. Despite this, total revenues grew by 14%.
However, market reaction has been negative, partly due to the absence of new deals for Ocado’s robotic warehouses, which investors had hoped for.
Last year, Ocado launched three new customer fulfillment centres (CFCs) in Sydney, Melbourne, and Madrid, with plans to open at least seven more over the next three years, starting with Warsaw in 2025.
But progress has been slower than anticipated, with the opening of two key CFCs in Charlotte, North Carolina, and Phoenix, Arizona, now pushed back to early 2026 due to a “new Auto Freezer order.”
Market Analyst’s View
Adam Vettese, market analyst at eToro, summed up Ocado’s situation:
“A familiar story from Ocado: there’s optimism—losses narrowing, strong revenue growth, and progress toward cash-flow positivity—but optimism alone won’t pay the bills.”
“Operational challenges persist. The rollout of robotic warehouses isn’t progressing as expected, and confirmed projects keep getting delayed.”
“Ocado insists more deals are coming, but investors are asking: how much longer will they keep burning cash? With shares now trading at less than half their value at the start of last year, some may see a buying opportunity—unless delays and setbacks continue.”
Stock Performance
Ocado’s shares have now plunged 16.36%% to 278.70p, making it the worst performer on the FTSE 250 index today.
