Ocado revenue growth slows to 11.2% after warehouse fire

Writer, Stock Market Wire
Tuesday, March 19, 2019 - 07:21

Online grocery retailer Ocado Group said a fire at its Andover robotic warehouse in Hampshire last month had slowed revenue growth to 11.2% in its fiscal first quarter.

The company said it was still assessing what impact the fire would have on its 2019 guidance for 10-15% retail revenue growth.

Ocado said an investigation indicated that there were no significant implications for the risk profile of the assets or the viability of the company's model.

'We will update the market after the conclusion of these investigations,' it added.

'All efforts are being made currently to minimise the disruption to consumers including setting up a temporary spoke in Andover.'

'We have plans that we are working on to provide more customer fulfilment centre capacity, which include growing our capacity in Erith faster than envisaged.'

Ocado said an analysis of rebubilding options had also begun.

Underlying orders per week in the 13 weeks to 3 March rose 11.3% to 314,000, though the average order size fell 0.2% to £110.24.

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