Ocado’s annual loss widened as increased investment in its solutions business more than offset higher revenue at the online retailer and technology group.
The statutory pretax loss widened to £176.9m in the year to the end of December from £52.3m a year earlier as revenue increased 7% to £2.5bn.
Earnings before interest, tax depreciation and amortisation fell to £61m from £73.1m. Analysts had on average expected earnings of £60m and revenue was in line with forecasts.
Distribution and administrative costs jumped 20% to £976.7m as Ocado spent on technology to supply its retailer customers and expanded support functions.
Ocado sells groceries online in the UK through a joint venture with Marks & Spencer – a business that has boomed during the pandemic. Its solutions business also helps retailers outside the UK set up and improve their online operations and this is forecast to be its main source of long-term growth.
Retail revenue rose 4.6% to £2.3bn in 2021 and international solutions revenue quadrupled to £66.6m as Ocado opened five facilities for customers. UK solutions and logistics income rose 8.6% to £710.4m.
Tim Steiner, Ocado’s chief executive, said: “The past year has further reinforced that demand for online grocery is here to stay. In the majority of mature markets, the fastest growing channel is online and to truly win here food retailers need to deliver the best offer with the best economics across all customer missions.”
