Feb 11, 2020

Ocado posts £214m loss as it ramps up spending on logistics

Ocado will spend over £600m in its current financial year, well over double last year's capital spending, as it opens the first robotic warehouses it is building to deliver groceries for its overseas partners. The heavy investment in facilities meant the company made a pre-tax loss of £214m for the year to December 1, significantly more than the £134m forecast by analysts. "As these two facilities are our first overseas sites to open, we plan to operate them initially with more support on the ground than we expect to need at future sites, to ensure as smooth as possible a launch and early ramp up in capacity," the company said in a statement. The newly-created UK solutions and logistics division, which provides services to the Ocado/M&S joint venture and Morrisons, reported earnings before interest, tax, depreciation and amortisation of £84.8m, up from £67m last year. Ocado finished the year with cash on hand of £750m and raised a further £600m through a convertible bond in December.

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