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Ocado in talks with multiple U.S. retailers for partnerships

Created at 16 Jul · 6:38 AM1 source↑ Market-relevant
IN SHORT

British online grocery technology firm Ocado is engaged in discussions with several U.S. retailers regarding potential partnerships, as it aims to secure new business in the American market. The company maintained its forecast for positive cash flow.

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Key Numbers

36%Ocado's share price drop in six months
12%Ocado's half-year adjusted earnings fall excluding one-off payments
£81 millionOcado's half-year adjusted earnings
$109.63 millionOcado's half-year adjusted earnings in USD

Who's Involved

Ocado
British technology and online grocery group
Kroger
U.S. partner that closed fulfillment centers
Sobeys
Canadian partner that closed fulfillment centers
Marks & Spencer
UK joint venture partner for Ocado's online grocery business

↳ Why This Matters

Ocado's efforts to secure new U.S. partnerships are crucial for its growth strategy and financial stability, especially following setbacks with existing partners. Success in the U.S. market could significantly impact its future revenue and profitability.

Key facts

  • Ocado is in discussions with multiple retailers in the U.S.
  • The company is seeking new partners in the U.S. market.
  • Ocado's half-year earnings were boosted by one-off termination fees.
  • Ocado maintained its forecast for cash flow to turn positive in the current six-month period.

British technology and online grocery group Ocado announced it is actively pursuing new business in the United States, engaging in discussions with multiple retailers. This strategic focus comes after its partners Kroger in the U.S. and Sobeys in Canada recently closed robotic customer fulfillment centers due to weaker-than-expected demand. These closures have contributed to a 36% decline in Ocado's shares over the past six months. The company is now presenting "significantly evolved solutions" to potential U.S. partners. Despite a 12% drop in half-year adjusted earnings to £81 million ($109.63 million) when excluding one-off termination fees, Ocado reiterated its forecast for cash flow to become positive within the current six-month period and for the full year next year.

Frequently asked questions

Ocado provides automated technology for distribution centers and also operates its own UK online grocery business through a joint venture with Marks & Spencer.

Ocado's partners Kroger (U.S.) and Sobeys (Canada) closed their robotic customer fulfillment centers due to weaker-than-expected demand.

Ocado's shares have fallen 36% in the last six months.

What Happens Next

01Ocado aims to turn cash flow positive in the current six-month period.
02Ocado forecasts full-year cash flow to be positive next year.

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Cadence

How It Developed

Ocado is holding multiple live engagements with U.S. retailers.
The company is seeking new partners in the U.S. market.
Ocado posted half-year earnings boosted by one-off termination fees.
Ocado maintained its forecast for cash flow to turn positive in the current six-month period.

Sources

T1
UK's Ocado says talking to multiple potential partners in U.SReuters

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