Published by Global Banking & Finance Review®
Posted on July 17, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleOcado plans to achieve positive cash flow by 2025/26, focusing on cost reduction and technology expansion amid market challenges.
By James Davey
LONDON (Reuters) -Ocado's priority is to generate cash - rather than burn it - in its next financial year, the British online supermarket and technology group said on Thursday, as it reported a 76.5% rise in underlying earnings in its first half.
The group runs an online supermarket through a joint venture with Marks & Spencer, though its market value is mainly driven by the sale of its cutting-edge robotic warehouse technology to retailers around the world.
It said its core priority was to turn cash flow positive during its 2025/26 year - which starts in December - by reducing costs, and to be full-year cash positive in the following year.
Shares in Ocado have fallen 35% over the last year, reflecting market anxiety at the pace of new site openings for its existing grocery retail partners and a lack of technology deals with new partners.
Ocado's most important partner, Kroger in the United States, has slowed its roll-out of automated warehouses, or customer fulfilment centres (CFCs) as Ocado calls them, while last year its Canadian partner Sobeys paused the opening of a fourth warehouse.
Last month, Ocado did, however, expand its partnership with Spanish supermarket group Bon Preu.
Ocado has a further eight CFCs due to go live over the next three years.
The group said it made adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), its preferred profit measure, of 91.8 million pounds ($122.9 million) in the first half of its 2024/25 year, up from 52.0 million in the same period a year earlier. Revenue rose 13.2% to 674 million pounds.
Ocado swung to a statutory first half-profit of 611.8 million pounds versus a loss of 153.3 million pounds a year earlier, reflecting changes to the way it accounts for its stake in the Ocado Retail joint venture with M&S.
The group said its expectations for the full year were unchanged.
($1 = 0.7468 pounds)
(Reporting by James Davey. Editing by Paul Sandle and Mark Potter)
Ocado's core priority is to turn cash flow positive during its 2025/26 year by reducing costs.
Shares in Ocado have fallen 35% over the last year, reflecting market anxiety about new site openings and technology deals.
Last month, Ocado expanded its partnership with Spanish supermarket group Bon Preu.
Ocado reported adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) of 91.8 million pounds in the first half of the year.
Ocado's most important partner, Kroger in the United States, has slowed its roll-out of automated warehouses, impacting Ocado's market performance.
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