Ocado Expands Beyond Grocery with McKesson Canada Deal

The British online supermarket will provide its robotic warehouse technology to the drug distributor, marking its first venture outside the grocery sector.

• Ocado Group, a British online supermarket and technology company, has secured its first deal outside grocery retail with drug distributor McKesson Corp's Canada unit.
• The deal involves providing Ocado's robotic warehouse technology to a McKesson site.
• Ocado will receive upfront fees during the construction process, a final payment upon installation, and an ongoing annual fee for servicing and maintenance.
• Despite the deal, Ocado expects minimal impact on cash flow and earnings in the current financial year, but it will be cash and EBITDA positive in 2025.
• Ocado's shares closed up 5.6% on the day of the announcement, reducing losses over the last year to 22.6%.

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