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| 20.08.25 05:03:22 |
Zeit zum Besorgnis sein? Analysten haben die Ocado Group plc (LON:OCDO) Ausblick gesenkt. |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Okay, here’s a 400-word summary of the Simply Wall St article, followed by a German translation:
**Summary (400 words)**
Analysts have significantly downgraded their forecasts for Ocado Group (LON:OCDO), signaling a substantial shift in sentiment regarding the online grocery giant. The key takeaway is a dramatic reduction in projected revenue for 2025, now estimated at UK£1.6 billion, a considerable drop from the previously anticipated UK£3.5 billion. This revision reflects a perceived overestimation of Ocado’s potential in prior forecasts.
Despite the negative revision, analysts are optimistic about Ocado’s future growth trajectory. They predict an impressive 52% annualised revenue growth rate until the end of 2025 – a stark contrast to the company’s recent history of a 15% annual decline over the past five years. This accelerated growth rate is considerably higher than the broader industry forecast, which currently anticipates just 3% annual revenue growth for comparable companies.
This divergence in forecasts suggests Ocado is expected to outperform its competitors in the coming years, although the market’s reaction to this news has understandably led to increased caution. Investors might be wary given the drastic reduction in revenue expectations.
Simply Wall St has compiled extended forecasts for Ocado Group through 2027, offering a longer-term perspective. This extended analysis continues to highlight Ocado’s projected growth as significantly outpacing the industry average.
The article emphasizes the importance of comparing forecasts against historical performance and industry benchmarks. It also encourages investors to consider management’s actions – specifically, whether they are buying or selling company stock – as an indicator of confidence.
Finally, the article includes a disclaimer emphasizing that this analysis is based on historical data and analyst forecasts, not current price-sensitive information. It stresses that the content is not financial advice and should not be used as the sole basis for investment decisions.
**German Translation**
**Zusammenfassung des Ocado Group Artikels (400 Wörter)**
Analysten haben ihre Prognosen für Ocado Group (LON:OCDO) deutlich reduziert, was auf einen deutlichen Wandel der Stimmung bezüglich des Online-Lebensmittelgroßhändlers hindeutet. Der wichtigste Punkt ist eine dramatische Reduzierung der Umsatzprognosen für 2025, die nun bei 1,6 Milliarden GBP geschätzt werden, ein erheblicher Rückgang von den zuvor erwarteten 3,5 Milliarden GBP. Diese Revision spiegelt eine überhöhte Einschätzung des Potenzials von Ocado in früheren Prognosen wider.
Trotz der negativen Revision prognostizieren die Analysten ein beeindruckendes Umsatzwachstum von 52 % pro Jahr bis Ende 2025 – ein deutlicher Gegensatz zum jüngsten Verlauf des Unternehmens, das in den letzten fünf Jahren mit einem jährlichen Rückgang von 15 % zu kämpfen hatte. Dieses beschleunigte Wachstumsrate liegt deutlich über der Prognose für die breitere Branche, die derzeit nur ein jährliches Umsatzwachstum von 3 % für vergleichbare Unternehmen erwartet.
Diese Divergenz der Prognosen deutet darauf hin, dass Ocado erwartet wird, seine Wettbewerber in den kommenden Jahren zu übertreffen, obwohl die Reaktion des Marktes auf diese Neuigkeiten zu erhöhter Vorsicht geführt hat. Investoren könnten vorsichtig sein angesichts der drastischen Reduzierung der Umsatzprognosen.
Simply Wall St hat ausführliche Prognosen für Ocado Group bis 2027 zusammengestellt, die eine langfristigere Perspektive bieten. Diese erweiterte Analyse unterstreicht weiterhin das prognostizierte Wachstum von Ocado, das deutlich höher ist als das der Branche insgesamt.
Der Artikel betont die Bedeutung des Vergleichs von Prognosen mit historischer Leistung und Branchenstandards. Er ermutigt Investoren auch, die Maßnahmen der Unternehmensleitung zu berücksichtigen – insbesondere ob sie Aktien kaufen oder verkaufen – als Indikator für das Vertrauen.
Schließlich enthält der Artikel eine Haftungsausschluss, der darauf hinweist, dass diese Analyse auf historischen Daten und Analystenprognosen basiert, nicht auf aktuellen, preissensiblen Informationen. Er betont, dass der Inhalt keine Finanzberatung ist und nicht als alleinige Grundlage für Anlageentscheidungen verwendet werden sollte. |
| 17.07.25 07:30:00 |
Ocado Shares Jump After Technology Unit, M&S Retail Tie-Up Drive Swing to Pretax Profit |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Surging revenue at Ocado’s joint venture with Marks & Spencer and a doubling of earnings at its technology arm drove the swing to first-half pretax profit.
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| 11.07.25 11:35:13 |
Stocks to watch next week: Goldman Sachs, Netflix, TSMC, ASML and Burberry |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
The latest earnings season kicks off in the week ahead, with a number of companies across a range of sectors due to report.
Results from the major US investment banks act as the traditional starting gun for earnings season, with Goldman Sachs (GS) among those due to report.
Another big name set to report in the coming week is Netflix (NFLX), with the stock trading near record highs, as the streaming giant has appeared to remain relatively insulated from tariff shocks that have weighed on other tech companies.
In the semiconductor sector, TSMC (2330.TW, TSM) earnings will be in focus, given the company is the world's largest contract chipmaker so is considered a bellwether for the global industry.
Dutch company ASML (ASML.AS, ASML), which is also set to report, is another company considered to act as a barometer for the health of the chip sector as its lithography machines are used to make semiconductors.
Read more: What could trigger a late summer crisis for markets in the third quarter?
Back on the London market, investors will be keeping an eye on Burberry's (BRBY.L) latest trading update, to see how the luxury fashion brand's turnaround efforts are progressing.
Here's more on what to look out for:
Goldman Sachs (GS) – Reports second quarter earnings on Wednesday 16 July
Major investment banks have become more bullish in their outlook for US stocks this year, looking past near-term uncertainties.
Earlier this week, Goldman Sachs (GS) became the latest bank to raise its year-target for the S&P 500 (^GSPC) index, from 6,100 to 6,600 points. The index closed at 6,280.46 points on Thursday, having risen 6.8% year-to-date.
According to a Reuters report, Goldman analysts said in a note on Monday: "A resilient outlook for 2026 earnings growth, the resumption of Fed rate cuts, and neutral investor positioning argue for further market upside as the recent narrow rally broadens."David Solomon, CEO of Goldman Sachs.·Reuters / Reuters
Bank of America (BAC) also lifted its S&P 500 (^GSPC) target this week, while Barclays (BARC.L), Citigroup (C) and Deutsche Bank (DBK.DE) raised theirs last month.
Goldman appeared to benefit from market volatility in the first quarter, with its revenue from equities trading up 27% year-on-year to $4.19bn (£3.09bn), as investors sought to adjust their portfolios amid tariff turmoil.
The firm's total revenue in the first quarter rose 6% to $15.06bn, which beat analyst consensus of $14.8bn, according to Bloomberg.
Meanwhile, earnings per share of $14.12 also came in ahead of expectations and was up from $11.58n in the first quarter of 2024.
Story Continues
Goldman shares have rebounded from a fall following US president Donald Trump's "Liberation Day" tariff announcement, and have gained nearly 24% year-to-date, with the stock hitting a fresh high on Monday.
While the firm didn't offer specific guidance in those results in April, Goldman CEO David Solomon said at the time that it was "entering the second quarter with a markedly different operating environment than earlier this year".
Goldman is due to release its second quarter results on Wednesday, along with Bank of America and Morgan Stanley (MS). The day before JPMorgan Chase (JPM), Wells Fargo (WFC), Citigroup, BlackRock (BLK) and BNY Mellon (BK) are set to release their latest earnings.
Netflix (NFLX) – Reports second quarter earnings on Thursday 17 July
The final series of Squid Game and the latest season of Black Mirror were among the big Netflix releases on the streaming platform in the second quarter.
In the first quarter, hit shows including the series Adolescence and the film Back in Action, starring Cameron Diaz, helped keep audiences hooked on the platform.
Revenue came in at $10.54bn in the first quarter, which was up 12.5% year-on-year and slightly higher than Bloomberg analyst expectations of $10.5bn. Earnings per share of $6.61 also beat analyst estimates of $5.68.Cameron Diaz and Jamie Foxx pose on the red carpet to present the movie Back In Action in Berlin, Germany, 15 January 2025.·REUTERS / Reuters
Netflix's revenue guidance of $11.04bn for the second quarter was also higher than the $10.88bn analysts polled by Bloomberg had expected. The streamer has forecasted earnings per share of $7.03 for the second quarter.
For full-year 2025, the company reiterated its prior forecast of $43.5bn to $44.5bn revenue growth and operating margins of 29%.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Netflix has been able to demonstrate its qualities as a recession and tariff resilient business, right at a time when those two traits are highly sought after. Add in strong fundamentals, plus good execution, and it’s not too surprising to see Netflix flirting with all-time highs as we look ahead to second quarter results next week."
Read more: UK economy shrinks for second month in a row
Since the company released its first quarter results, its shares have continued to climb, ending June at another record high and the stock is now up nearly 41% year-to-date.
"Netflix doesn’t release subscriber growth numbers anymore, so analysts will have to make do with some traditional metrics," Britzman said. "Operating margins will be in focus, with improvements in the last quarter expected to repeat next week as 33% has been touted as the target number."
He added: "Things are expected to dip in the second half as content spend ramps up but there’s scope for full year expectations to move higher if a solid margin number gets printed next week."
TSMC (2330.TW, TSM) – Reports second quarter results on Thursday 17 July
Chipmaker TSMC (2330.TW, TSM) released its first half revenue figures on Thursday, giving investors a sense of how it has performed since the start of the year ahead of its latest results.
TSMC's revenue for April to June came in at $933.8bn Taiwan dollars (£23.6bn), according to Reuters, which was up nearly 39% on the same period last year and beat an LSEG SmartEstimate of $927.831bn Taiwan dollars.
For June, TSMC posted revenue of approximately $263.71bn Taiwan dollars, which was down 17.7% on May but was nearly 27% higher than the same month last year.
Revenue for January through June totalled $1.77tn Taiwan dollars, which was up 40% on the first six months of last year.TSMC's revenue for April to June came in at $933.8bn Taiwan dollars.·Cynthia Lee
Dan Coatsworth, investment analyst at AJ Bell (AJB.L), said: "Trading at TSMC remains robust despite a mix of currency headwinds and tariff turmoil, showing just how powerful and resilient the AI theme is proving to be.
"Companies continue to spend heavily in trying to get ahead in artificial intelligence and this benefits businesses such as TSMC which provide the required infrastructure."
Earlier this week, Trump said that tariffs on chips would soon be announced, though TSMC has been investing more in its operations in America.
In March, TSMC announced plans to expand its investment in manufacturing in the US by $100bn, on top of the $65bn it was already putting behind its operations in Arizona.
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In addition, TSMC CEO CC Wei said at the company's annual shareholders meeting last month that tariffs "do have some impact on TSMC, but not directly".
"That's because tariffs are imposed on importers, not exporters," he said, according to a Reuters report. "TSMC is an exporter. However, tariffs can lead to slightly higher prices, and when prices go up, demand may go down."
"If demand drops, TSMC's business could be affected," he added. "But I can assure you that AI demand has always been very strong and it's consistently outpacing supply."
However, broader tariff-fuelled market volatility has weighed on the stock this year, leaving Taipei-listed shares up just 2.3% year-to-date.
ASML (ASML.AS, ASML) – Reports second quarter results on Wednesday 16 July
Shares in ASML (ASML.AS, ASML) fell after the chip manufacturing equipment maker released its first quarter results in April and are hovering around the flatline year-to-date.
The company's net bookings of €3.94bn (£3.4bn) fell short of expectations of €4.82bn, according to average analyst estimate data compiled by Bloomberg.
First quarter net sales of €7.7bn came in line with the company's guidance, while earnings per share of €6 was higher than the €3.11 it reported for the same period last year.
At the time, ASML CEO Christophe Fouquet warned that "recent tariff announcements have increased uncertainty in the macro environment and the situation will remain dynamic for a while".
Read more: UK economy faces severe risks as Trump tariffs threaten annual £10bn bill
"As previously shared, artificial intelligence continues to be the primary growth driver in our industry. It has created a shift in the market dynamics that benefits some customers more than others, contributing to both upside potential and downside risks as reflected in our 2025 revenue range," he said.
For the second quarter, ASML guided to total net sales of €7.2bn and €7.7bn. For the year, the company expects this figure to be in the range of €30bn to €35bn.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said that investors "will have a keen eye trained on the outlook and will want to see if the company’s forecast for 2025 is unchanged."
"Longer-term, ASML's dominant market position should mean it’s well-placed to benefit from growth trends in the semiconductor industry, but there may be volatility ahead given unpredictable trade policy," she said.
Burberry (BRBY.L) – Releases first quarter trading update on Friday 18 July
Shares in Burberry (BRBY.L) have rebounded since their April lows, with the stock now up 22% year-to-date.
The stock rallied in May after Burberry announced plans in its preliminary full-year results to make a further £60m ($81m) in cost savings by the 2027 fiscal year, as CEO Joshua Schulman pushes ahead efforts to turnaround the luxury fashion brand.
This was on top of the £40m in cost savings the company had previously announced. Burberry revealed that part of the savings would come from plans to cut around 1,700 jobs worldwide by 2027.Burberry plans to cut around 1,700 jobs worldwide by 2027.·REUTERS / Reuters
For the year, Burberry reported a 17% drop in revenue to £2.46bn and a loss before tax of £66m, down 117% from the pre-tax profit of £383m the company made in 2024.
In terms of guidance, Burberry flagged that it was still in the early stages of its turnaround but that the "current macroeconomic environment has become more uncertain in light of geopolitical developments".
The company said it planned to deliver margin improvement through a continued focus on simplification, productivity and cash flow, expecting to see the impact of its actions as the year progresses.
Richard Hunter, head of markets at interactive investor, said that Burberry's May update was "very well received by the market".
Read more: Stocks that are trending today
"The 'Burberry Forward' strategy which the group announced in November has had an immediate positive impact, despite the factors outside of the group’s control which remain a strong headwind," he said.
However, Hunter added: "For all of the instant progress, there remains much to do. Burberry points out, for example, that UK business continues to be seriously impacted by the withdrawal of VAT refunds for overseas visitors, which has led to the UK being the least competitive destination in Europe for tourist shopping.
"In addition, the group’s important Asian market is also a concern. Consumer sentiment was on shaky ground even before the reciprocal tariffs which could yet damage the US and Chinese economies, and the outlook is uncertain."
Other companies reporting next week include:
Monday 14 July
Ashmore Group (ASHM.L)
Brunner Investment Trust (BUT.L)
Fastenal Company (FAST)
Tata Technologies Limited (TATATECH.NS)
Tuesday 15 July
Barratt Redrow (BTRW.L)
Atalaya Mining Copper (ATYM.L)
B&M European Value Retail (BME.L)
Experian (EXPN.L)
IntegraFin Holdings (IHP.L)
Rio Tinto (RIO.L)
SSP Group (SSPG.L)
JPMorgan Chase & Co. (JPM)
Wells Fargo & Company (WFC)
Citigroup Inc. (C)
BlackRock, Inc. (BLK)
The Bank of New York Mellon Corporation (BK)
State Street Corporation (STT)
Omnicom Group Inc. (OMC)
Wednesday 16 July
Antofagasta (ANTO.L)
Intermediate Capital Group (ICG.L)
Trustpilot Group (TRST.L)
Reliance Industrial Infrastructure Limited (RIIL.NS)
Bank of America Corporation (BAC)
Johnson & Johnson (JNJ)
Morgan Stanley (MS)
United Airlines Holdings, Inc. (UAL)
Alcoa Corporation (AA)
Thursday 17 July
EasyJet (EZJ.L)
Frasers (FRAS.L)
Ocado (OCDO.L)
BHP Group (BHP.L)
Diploma (DPLM.L)
Dunelm Group (DNLM.L)
PepsiCo (PEP)
QinetiQ Group (QQ.L)
Volvo (VOLV-B.ST)
Novartis AG (NOVN.SW)
Jio Financial Services Limited (JIOFIN.NS)
Tata Communications Limited (TATACOMM.NS)
Abbott Laboratories (ABT)
GE Aerospace (GE)
ManpowerGroup Inc. (MAN)
Friday 18 July
Bridgepoint Group (BPT.L)
Reliance Industries Ltd (RELIANCE.NS)
Tokyo Steel Manufacturing Co., Ltd. (5423.T)
American Express Company (AXP)
The Charles Schwab Corporation (SCHW)
3M Company (MMM)
You can read Yahoo Finance's full calendar here.
Read more:
Bank of England's Bailey opposes cornerstone of Rachel Reeve's pension plans Longest 0% balance transfer credit card deals of the week How to start investing with an employee share scheme
Download the Yahoo Finance app, available for Apple and Android.
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| 07.07.25 06:01:39 |
A Look At The Intrinsic Value Of Ocado Group plc (LON:OCDO) |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Key Insights
Ocado Group's estimated fair value is UK£2.11 based on 2 Stage Free Cash Flow to Equity Current share price of UK£2.43 suggests Ocado Group is potentially trading close to its fair value Our fair value estimate is 25% lower than Ocado Group's analyst price target of UK£2.82
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Ocado Group plc (LON:OCDO) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.
We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
The Calculation
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:
10-year free cash flow (FCF) forecast
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF (£, Millions) -UK£84.8m UK£40.8m UK£58.7m UK£77.3m UK£94.9m UK£110.8m UK£124.6m UK£136.5m UK£146.6m UK£155.3m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 43.97% Est @ 31.54% Est @ 22.84% Est @ 16.75% Est @ 12.49% Est @ 9.50% Est @ 7.41% Est @ 5.95% Present Value (£, Millions) Discounted @ 8.2% -UK£78.3 UK£34.8 UK£46.3 UK£56.3 UK£63.9 UK£68.9 UK£71.6 UK£72.4 UK£71.8 UK£70.3
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = UK£478m
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The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.5%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.2%.
Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = UK£155m× (1 + 2.5%) ÷ (8.2%– 2.5%) = UK£2.8b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£2.8b÷ ( 1 + 8.2%)10= UK£1.3b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is UK£1.7b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of UK£2.4, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.LSE:OCDO Discounted Cash Flow July 7th 2025
Important Assumptions
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Ocado Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.2%, which is based on a levered beta of 1.113. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
View our latest analysis for Ocado Group
SWOT Analysis for Ocado Group
Strength
No major strengths identified for OCDO.
Weakness
Expensive based on P/S ratio and estimated fair value.
Opportunity
Has sufficient cash runway for more than 3 years based on current free cash flows.
Threat
Debt is not well covered by operating cash flow.
Not expected to become profitable over the next 3 years.
Next Steps:
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Ocado Group, we've put together three fundamental factors you should assess:
Risks: You should be aware of the 1 warning sign for Ocado Group we've uncovered before considering an investment in the company. Future Earnings: How does OCDO's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the LSE every day. If you want to find the calculation for other stocks just search here.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 29.06.25 09:00:00 |
Ocado borrowed its way to success. Now its debt addiction risks disaster |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
illustration: Ocado van ruined
Tim Steiner likes to say he has had two jobs. First, he was a bond trader at Goldman Sachs. Seven years later – when it “felt like a time to do something other than that” – he set up Ocado Group and became its chief executive. He has not moved roles since.
The two careers may seem miles apart. But for Steiner, there have been some constants. One of them is a preoccupation with debt.
Concerns over Ocado’s debt pile are rapidly coming to the fore as the technology group becomes the latest to be burned by spiralling interest rates.
A recent move to remortgage some of its debts has left it with higher borrowing rates than before, with Ocado’s debt interest bill rocketing from an estimated £27.3m a year ago to almost £100m this year.
The surge has thrown into sharp focus the ongoing struggle at Ocado, as it battles to shed its image as a business fuelled by debt to one that funds its own growth. Will Steiner and the company’s addiction to debt be their undoing?
Unlike most chief executives, Steiner did not inherit his position but used his Goldman trading know-how to establish Ocado from the ground up, growing it a valuation shy of £2bn.
The company, which supplies robot warehouse technology, has established tie-ups with a swathe of businesses including US retail giant Kroger and Britain’s Morrisons. It has a long-standing deal with Marks & Spencer to jointly own online grocer Ocado Retail, which is best known for its purple and green vans seen on Britain’s street.Tim Steiner is the founder and chief executive of Ocado Group, which supplies robot warehouse technology - Chris J. Ratcliffe/Bloomberg
Yet Ocado has used the debt markets to propel that growth more than most, leaving it vulnerable to an interest rates environment which has been less than favourable recently.
In May, Ocado revealed that it was selling £300m of debt – so-called “senior unsecured notes” repayable in 2030 – at a coupon of 11pc.
It would use the funds to buy back bonds with yields of around 0.88pc and 3.88pc that were due this year and next – borrowing new money to pay off its old debt.
The decision was taken “to extend the maturity profile of Ocado’s debt”, the company said. Still, it has meant Ocado’s debt interest bill has soared.
One insider said: “The thing is, what could Ocado do? It needed to refinance – but obviously debt is much more expensive now than it was a few years ago.”
In its first 24 years, the company raised more than £4.5bn of equity and debt. At the end of December, its net debt stood at £1.2bn versus its equity value of around £1.9bn – a debt-to-equity ratio which can sometimes raise eyebrows.
Since then, it has refinanced some of its bonds, but also drawn down on a $152m (£110m) letter of credit linked to its tie-up with US giant Kroger.
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Brittain Ladd, a consultant who advised Kroger on its deal with Ocado, says the company is known for its “high-debt load compared with its market capitalisation”.
Within Ocado, there have been steps to reverse this. Recently, bosses have stepped up efforts to finally turn the company cash-generative. Spiralling interest rates have only made it more important that Ocado stop relying on debt.
“If it could just get to cash-flow positivity, then life looks so much easier,” says one insider.
For now, Ocado remains firmly in the red, recording a pre-tax loss of £375m in 2024 on revenues of £1.2bn. This compares with a £394m loss on revenues of £1.1bn a year earlier.
In an attempt to turn profitable, Ocado made almost 1,000 job cuts last year. In February, it said it would have to axe more positions to try to make the business profitable, with roles in its research and development department to go.
Steiner said it was “not a fun position to be in but we are coming to the end of the cycle [of cuts]”.
However, Ocado chiefs have claimed this will help them to become cash-flow positive by next year.
Some in the City remain wary after years where Ocado has pushed back cash-flow targets.
Fitch Ratings, the credit rating agency, gave Ocado’s new £300m debt raise a rating of B-, only slightly better than the triple C bracket, which is deemed highly risky.
It said this was because Ocado’s “execution risk on reaching scale and profitability remains high due to the slow deployment of the company’s infrastructure by its partners, while its liquidity position is being eroded by high capex”.
Clive Black, of Shore Capital Markets, says Ocado’s problems have been long-running.
“From day one, this has been a business that has had to expend capital in order to generate sales.” As interest rates have risen, he says “the financial corridors have been closing in on Ocado’s options, so they’ve had to materially reduce their capital investment”.
However, even last year, Ocado was still spending £392m on capital expenditure, compared with £520m in 2024. Ocado insists it has strong liquidity, with £772m of cash and cash equivalents at the end of the year.
However, Black says he believes “there is a reasonable prospect that Ocado will have to come back to the market and raise more equity”.
There are potential ways Ocado can avoid this. The opportunity in the US – where it is partnered with grocery giant Kroger – is significant.
“The US is a trillion-dollar grocery market, “ says one insider. “Kroger is 20pc of that so it’s absolutely huge.”
If the US retailer were to move to take scores more robot warehouses – from eight currently – it would be “completely transformational” for Ocado, they say.
Ladd says others are waiting to see what Kroger will do, after years of concerns over the appetite for its warehouses. Ocado slowed its rollout of warehouses in the UK in 2022 amid weaker demand.
“The biggest challenge for Ocado is that they haven’t been able to stabilise the relationship with Kroger,” he says. “Ocado must get Kroger to announce they view Ocado as a long-term solution and partner. The failure to do this is why Ocado isn’t signing other retailers.”
City sources say it will be a major focus at Ocado’s interim results in July, with bosses under pressure to get Kroger to sign up for more robot warehouses.
Last December, The Telegraph revealed Ocado was parachuting staff into the existing US warehouses to help Kroger get the best out of its technology.
In the meantime, all Ocado can do is cross its fingers – and cut its own costs. Its rising debt interest bill will be far from helpful.
Steiner, though, has always maintained he is up for a challenge. It is something that has been engrained in him from the start of the career. “I’m a problem-solver,” he said in 2022. It was something he learnt at Goldman Sachs.
“Anyone running a business is a problem-solver, right?” Everything hinges on how he solves this one.
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| 18.04.25 17:35:52 |
Ocado apologises to Mumsnet after it said forum had ‘hateful political views’ |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Ocado has apologised to Mumsnet after pulling out from a partnership “citing Mumsnet’s ‘hateful political views'” because the forum included a call to clarify the definition of sex in the Equality Act in its 2024 manifesto.
It follows the judgment by the Supreme Court on Wednesday, that the definition of a woman in equality law is based on biological sex, meaning transgender women with a gender recognition certificate (GRC) can be excluded from single-sex spaces if “proportionate”.
Mumsnet’s chief executive Justine Roberts posted on the site after the ruling congratulating everyone on the website who “played a part in securing what I think most would agree is much-needed clarity in the Equality Act”.
She said that previously a “fair number of organisations pulled their advertising under pressure from activists”.
And she added that Ocado “pulled out” of a partnership after the website included a call to clarify the definition of sex in the Equality Act in its 2024 Mumsnet Manifesto, then “refused to speak to us ever since”.
Ms Roberts said: “When we included a call to clarify the definition of sex in the Equality Act in our 2024 Mumsnet Manifesto, Ocado, who had been excited about a partnership, abruptly pulled out, citing Mumsnet’s ‘hateful political views’.
“Despite repeated attempts to explain our position – as a platform committed to amplifying women’s voices – they’ve refused to speak to us ever since.”
Feminist campaigner and writer Julie Bindel, the co-founder of the law reform group Justice for Women, posted on X about potentially boycotting Ocado after “the Mumsnet thing” and Ocado replied on X saying: “These comments are not representative of us as a company, and we believe they were made by a temporary contractor who is no longer with the business.
“We apologise unreservedly to Mumsnet.”
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| 16.04.25 15:16:30 |
UK's Ocado CEO Steiner temporarily takes helm of tech division |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
(Reuters) - British online supermarket and technology firm Ocado said on Wednesday that CEO Tim Steiner will temporarily lead Ocado Solutions, the company's sub-unit which focuses on an all-encompassing technology platform for retailers.
The move comes as John Martin, the current boss of Ocado Solutions, steps down after 18 months in the role, the company said in a statement.
Ocado shares fell 6.9% to 291.6 pence by 1446 GMT on the London bourse, while the broader mid-cap FTSE-250 index was down 0.3%.
During his tenure, Martin expanded Ocado's global footprint by securing a deal with Saudi Arabian supermarket chain Panda Retail Co.
Ocado said Steiner will take charge of Ocado Solutions until a permanent CEO for the division is appointed, while James Matthews, the current CEO of Ocado Technology, will also become deputy CEO of the wider group.
Ocado Solutions is part of Ocado's Technology Solutions business, which also houses Ocado Intelligent Automation, a separate sub-division focusing on automation support for retailers to manage their operations.
(Reporting by Aatrayee Chatterjee in Bengaluru and James Davey in London; Editing by Shailesh Kuber)
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| 04.04.25 05:00:18 |
UK’s cheapest supermarket revealed |
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Aldi has been named the cheapest supermarket in March, with an average household basket full of groceries and other essentials coming in at £133.73, a study by consumer group Which? found.
Lidl came in second, with the same shopping list costing only 67p more at £134.40, with the supermarket’s loyalty scheme Lidl Plus and 70p more without, at £134.43.
Aldi shoppers saved an average of £42,68 over the month compared with customers at Waitrose, which was the most expensive retailer, at £ 176.41.
Read more: How Trump's tariffs will impact your finances and the UK economy
The basket of 79 items cost £146.79 at Tesco (TSCO.L) with a Clubcard, £147.09 at Asda, £150.46 at Sainsbury’s (SBRY.L) with a Nectar card, £155.47 at Morrisons with a More card and £167.20 at Ocado (OCDO.L).
Reena Sewraz, Which? retail editor, said: “Aldi has once again been crowned as the UK’s cheapest supermarket in our monthly price analysis, however, Lidl has narrowed the gap with its rival. It was also a strong month for Asda, as it continues to be the cheapest supermarket for a bigger list of groceries.
“Shoppers are still feeling the effects of food inflation and with prices forecast to rise again, people are likely looking to cut costs where they can. Our analysis shows that by switching supermarkets, shoppers could pay 24% less, highlighting the advantages of shopping around where possible."
The list of items included both branded and own-brand items, such as Birds Eye Peas, Hovis bread, milk and butter. Special offers and loyalty prices were included, but any multi-buys were not.
The study also found Asda to be the cheapest supermarket for a larger trolley of 203 items, at £498.
Asda beat Tesco by just over £5, as the country's biggest supermarket came in second at 503.03. Asda’s top spot for the longer shopping list comes as the supermarket brought back Rollback pricing — claiming to have slashed the prices of more than 4,000 products in-store and online by an average of 25%.
Waitrose was the most expensive supermarket for the larger trolley of items. In March, a Waitrose shop cost a total of £573.15, a difference of £75.15 compared to Asda.
Meanwhile, data from Kantar showed grocery price inflation edged up as the rising cost of food ranks just behind energy bills on the list of consumers’ concerns, figures show.
Supermarket prices are now 3.5% higher than a year ago, up from 3.3% in February after falling from 3.7% in December.
Meanwhile, customer spending on promotions reached their highest level for four years, making up 28.2% of all grocery sales.
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The supermarkets’ battle to compete for customers will be welcome news for households who remain worried about their financial situation.
Read more: UK households to be £400 worse off as taxes and bills rise
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “While the number of people reported as financially struggling has fallen from its recent peak, this still accounts for almost a quarter (22%) of the country.
“The rising cost of groceries ranks third on the list of concerns keeping consumers awake at night, just behind energy bills and the country’s overall economic outlook.”
Despite worries around personal finances, consumers still spent £134m on chocolate eggs and other seasonal confectionery last month, while more than a third of households bought hot cross buns, despite Easter not falling until later in April this year.
Kantar’s data shows there were 200,000 fewer visitors to supermarket cafes over the last year, with these outlets now accounting for just 0.3% of spending in the grocers.
Read more:
What Trump's tariffs could mean for UK mortgage rates Best places to live in England and Wales revealed How and when Trump's tariffs could impact UK inflation
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| 27.03.25 00:01:00 |
Easter eggs up to 50% more expensive than last year |
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Easter eggs have gone up in price by as much as 50% on last year while shrinking in size, according to an investigation.
The price of chocolate has risen by 16.5% in a year – compared to a 4.4% increase for supermarket food and drink overall – according to inflation tracking by Which?.
It comes after a steep fall in global cocoa production, driven by higher temperatures hindering the quality and quantity of beans, started driving wholesale costs to record highs.
An 80g pouch of Terry’s chocolate orange mini eggs at Lidl cost 99p in the run up to Easter in 2024 but has gone up to £1.35 while shrinking to 70g – meaning a price rise of 56% per 100g.
The same product, which originally cost more at other supermarkets, has gone up by 51% at Asda, 37% at Sainsbury’s and 14% at Tesco.
At Morrisons, Which? found a 200g Cadbury Creme Egg 5 Pack Mixed Chocolate Box had increased in price from £2.62 last year to £4 this year. A Nestle Kit Kat Chunky milk chocolate Easter egg stayed at the same price at the supermarket but has reduced in size from 129g to 110g – making it 17% more expensive per 100g.
At Tesco, Which? found a Twix white chocolate Easter egg had increased from £5 to £6 on last year and had also shrunk from 316g to 258g, meaning the unit price per 100g had gone up by 47%.
Meanwhile, Asda Fruit & Nut Milk Chocolate 200g is 73% more expensive, rising from £1.33 to £2.30.
At Ocado, a 110g NOMO Creamy Choc Buttons share bag 110g has gone up from £2.43 to £3.97, a 63% increase.
Which? money and retail editor Reena Sewraz said: “You can still get a good deal on your Easter chocolate by looking for special offers, comparing the price per gram or if you can, hold out until Easter Sunday when many of the eggs are likely to be reduced.”
A Mars Wrigley UK spokeswoman said: “We will always absorb pricing pressures where we can, but rising manufacturing costs – driven in part by well-documented increases in the cost of cocoa – have meant that we’ve had to adjust some of our product sizes to minimise changes to list price, ensuring our snacks continue to deliver great quality and affordable value for families this Easter.”
A Nestle spokeswoman said: “Like every manufacturer, we have seen significant increases in the cost of cocoa, making it much more expensive to manufacture our products.
“As always, we continue to be more efficient and absorb increasing costs where possible. To maintain the same high quality and delicious products that consumers know and love, it has sometimes been necessary to make adjustments to the price or weight of some of our products.
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“Retail pricing is always at the sole discretion of individual retailers.”
Ocado said: “With external factors continuing to push up the price of a range of commodities, we’re doing all we can to keep prices low for our customers.
“We also work closely with our suppliers to make sure pricing is fair, without compromising on quality.”
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| 26.03.25 17:22:55 |
London stocks make gains after drop in inflation |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
The FTSE 100 was in positive territory on Wednesday as traders welcomed easing inflation and digested the Chancellor’s spring statement.
Equity markets and the pound were largely untouched by the spring statement, which focused on departmental spending cuts.
Trading in London started with gains and remained in the green throughout the session after fresh Office for National Statistics (ONS) data showed that inflation dipped below expectations.
Consumer Price Index (CPI) inflation for February came in at 2.8%, dropping from 3% in the previous month, on the back of a fall in clothing and footwear prices for the month.
A number of major retailers, including Next and Kingfisher, were higher at the close.
The FTSE 100 finished 25.79 points, or 0.3%, higher to end the day at 8,689.59.
Elsewhere in Europe, it was much less positive on the other side of the Channel as tariff concerns once again pressed down on sentiment.
The Cac 40 ended 0.96% lower for the day and the Dax index was down 1.14%.
Stateside, the key technology sector had a weak start to trading over concerns related to efforts from China’s government to boost its chip-making companies.
Chris Beauchamp, chief market analyst at IG, said: “The more positive tone for US markets was not likely to last, and tariff reports and chip worries have driven Wall Street firmly into the red.
“Measures in China designed to improve energy efficiency for data centres seem squarely aimed at Nvidia, and the news has dragged the stock, and tech stocks generally, sharply lower.”
Meanwhile, sterling dropped to its lowest against the dollar for two weeks as lower-than-expected inflation suggested there could be more capacity for interest rate cuts soon by the Bank of England.
The pound was down 0.37% at 1.289 US dollars and was down 0.31% at 1.195 euros when London’s markets closed.
In company news, William Hill gambling group Evoke slumped in value during the session after it cautioned over slower sales growth at the start of 2025.
The firm, which also owns 888, also revealed aims to slash costs further over the year ahead to offset soaring wage costs, saying it would strip out between £15 million and £25 million in 2025.
Shares in the business slid by 19.5% to 321.1p at the close.
Ocado was among the day’s top performers after analysts at JP Morgan upgraded the online grocer, suggesting it was now “at an inflection point”.
The brokerage pointed towards improving market share after recent sales growth, helping to drive a jump in demand for the stock.
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Ocado shares finished up 16.3% at 2,083.09p as a result.
Virgin Wines UK was 2% lower at 48p despite the retail business reporting that its customer base surged in the second half of last year.
Elsewhere, the price of oil recovered further as reports of tight supplies helped offset recent concerns over demand.
A barrel of Brent crude oil was up by 1.1% to 73.82 dollars (£56.18) as markets were closing in London.
The biggest risers on the FTSE 100 were Shell, up 66p at 2,831p, Next, up 190p at 9,986p, Babcock, up 13.5p at 746p, Kingfisher, up 4.2p at 244.5p, and National Grid, up 14.4p at 979.6p.
The biggest fallers were Admiral Group, down 74p to 2,818p, Smiths Group, down 46p to 1,974p, Schroders, down 7.6p to 374.6p, Polar Capital Technology Trust, down 6p to 312.5p, and Antofagasta, down 36p to 1,890p.
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