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last mo.

Ocado Swings to First-Half Profit on £750m M&S JV Gain, Eyes 2025/26 Cash-Flow Break-Even

Its profit reflects a £750m JV accounting shift that narrowed first-half cash burn to £108m, positioning Ocado for a planned cash-flow turnaround in FY2025/26.

Ocado said the average number of items per basket in its grocery joint venture with Marks and Spencer has declined
President Trump calmed markets after he said he was ‘highly unlikely’ to dismiss Federal Reserve chief Jerome Powell
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Sir Keir Starmer and President Trump will discuss the steel deal in Scotland next week

Overview

  • Ocado posted H1 revenue of £674 million, up 13.2% year-on-year, while adjusted EBITDA climbed 76.4% to £91.8 million.
  • The group recorded a statutory profit of £611.8 million driven by a one-off £750 million accounting gain from deconsolidating its Marks & Spencer Retail joint venture.
  • First-half cash outflow improved by £93 million to £108 million, reflecting stronger EBITDA performance and reduced capital expenditure.
  • Ocado has made generating positive free cash flow in its 2025/26 financial year its core priority, enforcing cost discipline and controlled spending.
  • Its technology solutions arm grew revenues by 10% with EBITDA margins of 20–25%, and fulfilment centres went live with Lotte in Korea and Panda in Saudi Arabia even as Kroger and Sobeys delay new site roll-outs.