The British Ocado Group saw its adjusted EBITDA rise by 76 % to 91.8 million pounds (110 million euros) in the past half year, mainly thanks to its technology division. However, concerns about the company’s debt burden are growing.
Technology solutions drive revenue and profit
The technology solutions division was the strong performer within Ocado, doubling its adjusted EBITDA to 72.8 million pounds (87 million euros). Total group revenue climbed by 13.2 % to 674 million pounds (800 million euros) thanks to growth in both the technology segment (+ 14.9 %), logistics (+ 12.1 %), and Ocado Retail (+ 16.3 %).
The debt burden remains a problem for the British company: annual interest expenses have nearly quadrupled to almost 100 million pounds (120 million euros). To address its debt position, Ocado refinanced 300 million pounds (350 million euros) in bonds last quarter, raised 100 million pounds through a new issuance, and opened a credit line worth 112 million pounds (130 million euros). According to the company, this allows it to cover the repayments scheduled between 2025 and 2027 from its existing liquidity position.
Looking ahead with confidence
The group maintains its expectations for its financial year 2025, with the highest priority being to achieve a positive cash flow starting in 2026. CEO Tim Steiner is satisfied with what he calls a strong first half of the year and points to “important milestones” in both the United Kingdom and abroad.
“Our technology solutions division has more than doubled EBITDA and our underlying cash flow has improved significantly, ending the period with liquidity in excess of £1bn”, Retail Gazette quotes the CEO. At the same time, he emphasises the focus on cost control and structural growth through partnerships.
However, analysts remain critical due to the increased debt burden and associated interest costs, which could hinder the path to structural profitability.
