Ocado reports double-digit sales growth but momentum slowing

Online grocer Ocado reported double-digit sales growth in a “challenging and competitive” grocery retail environment.

For the 16 weeks to 29 November, group sales grew 15% to £381.6m, while gross retail sales were 13% higher at £351.8m.

The group sales figures represented a slowdown from last year but were still a touch above analysts’ forecasts.

Gross sales for the full year jumped 17.3% to £1.2bn.

Chief executive officer Tim Steiner said: “Order growth remains strong with average orders per week now exceeding 200,000. This reflects the ongoing shift to online grocery shopping and the specific value customers place on Ocado's leading proposition, offering the highest service levels and widest range. Our basket value declined as we remain competitive by following market moves in pricing.

"We are committed to further improving our offer to customers and to driving operational and capital efficiency across the business, which we believe will support growth. We anticipate the retail environment to remain challenging, but expect to continue growing sales ahead of the online grocery market."

The company made no mention of a first technology deal with an overseas retailer, having said in September that it was confident of achieving such a deal this year.

“There is no mention, as widely expected, of the much vaunted international deal(s), although no doubt they will come one day,” said Shore Capital.

At 0826 GMT, Ocado shares were down 4% to 344.90p.