Ocado Retail, a joint venture between Ocado Group plc and Marks & Spencer Group plc, has released its Q4 trading statement for the 13 weeks to 26th November 2023. The report highlights a 10.9% growth in Q4 retail revenue, marking the fourth consecutive period of quarter-on-quarter growth. Additionally, the company saw a 4.8% increase in volumes, 6.3% growth in average orders per week, and a 5.9% rise in active customers year-on-year. The average basket value and average selling price also experienced positive growth, reflecting Ocado's focus on improving pricing relative to the market.
For the full year 2023, Ocado Retail reported a 7.0% growth in retail revenue. Despite a 0.9% decrease in Ocado.com volumes, the company saw a 4.0% increase in average orders per week, reflecting the growth in active customers. The average basket value and average selling price also increased, with the company returning to positive EBITDA for the full year.
Ocado Retail's Perfect Execution program has strengthened the customer proposition, with a 6% increase in the percentage of Perfect Orders and improved product fulfillment. The company has also expanded its product range, offering more M&S products and introducing new and unique Ocado Own Brand products. Furthermore, consumers have benefited from lower prices through the Ocado Price Promise, resulting in improved satisfaction scores on value.
During the Christmas trading period, Ocado Retail achieved record sales, with high demand and over 90% of peak Christmas slots sold by mid-October. The company experienced a 7% increase in sales between December 20th and 24th, with a record day for "eaches" delivered on the 23rd December.
Hannah Gibson, Ocado Retail's Chief Executive Officer, expressed satisfaction with the company's progress in 2023 and highlighted the strong momentum going into the new year. She also outlined the company's plans to build on its strong platform in 2024.
Looking ahead to FY24, Ocado Retail expects sustained volume growth and mid-high single-digit revenue growth. The company also aims to make further progress in increasing efficiencies and demonstrating operational leverage, with the goal of achieving a high mid-single digit EBITDA margin in the midterm.
A video featuring CEO Hannah Gibson discussing recent performance, strategy, and the outlook for Ocado Retail is available on the Ocado Group website. Additionally, Ocado Group will be hosting an analyst conference call to discuss the trading statement.
Overall, the trading statement reflects Ocado Retail's strong performance in Q4 and FY23, as well as its positive outlook and guidance for FY24.