Key facts
- Ocado CEO Tim Steiner plans to step down in approximately 18 months, transitioning to a founder role.
- The succession plan follows a reported boardroom dispute led by chair Adam Warby.
- Ocado's pre-tax earnings fell 90% to £17m in the six months to May.
- Ocado Retail, the joint venture with Marks & Spencer, reported a 15% revenue increase and a £12m pre-tax profit.
Ocado CEO Tim Steiner has stated he is "as excited and energised" about the company's future, despite an impending departure from his CEO role in approximately 18 months. The succession plan follows a reported boardroom dispute where chair Adam Warby reportedly sought to replace Steiner.
Announcing the company's half-year results, Steiner sought to quell concerns, highlighting Ocado's technology, talent, and market opportunity. However, the results revealed a significant 90% slump in pre-tax earnings to £17m for the six months ending May. This occurred despite a 54% increase in revenue to £1bn, a figure heavily influenced by £354m in compensation and accelerated fees from the closure of warehouse operations with former partners. Excluding these one-off fees, revenue from Ocado's technology services arm declined by two-thirds to £14m. The company is actively seeking new partners for its grocery warehouse services across North America, Europe, and Asia.
In contrast, Ocado Retail, the online grocery partnership with Marks & Spencer, showed positive momentum, with revenue up 15% to £1.8bn and market share expanding to 13.7%. This retail arm also returned to profitability, posting a £12m pre-tax profit. Ocado's shares fell 7% at the market open on Thursday, continuing a trend that has seen the stock lose significant value over the past five years.