REG - Ocado Group PLC - Update on Sobeys Partnership

OcadoAnnouncement

20/06/2024 11:45

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RNS Number : 2511T  Ocado Group PLC  20 June 2024

Ocado Group plc

20 June 2024

 

Ocado Group plc

Update on Sobeys Partnership

 

Ocado Group plc ("Ocado" or the "Company") notes that Empire Company Limited
has today announced a pause to the planned go-live of Sobeys' CFC4 in
Vancouver, Canada, which was originally planned for 2025. The go-live timeline
for the Vancouver CFC will be under regular review, and the site will be able
to commission and scale quickly when required.

 

Ocado's partners in North America, Kroger and Sobeys, have both announced
strong growth in digital sales in their latest quarterly results. With Ocado
Retail the fastest growing grocer in the UK today, there is clear evidence
that online is returning overall to being the fastest growing channel in
grocery.

 

As the online channel accelerates Ocado is supporting its partners to grow
volumes and expand profitably, drawing on the experience of more than 20 years
operating and growing an online grocery retailer in the UK, one of the world's
most competitive grocery markets. As part of this programme, Ocado and Sobeys
have decided for now to focus their joint resources into driving order and
sales volumes across the current network.  This currently comprises 3 live
CFCs in major Canadian markets, across Toronto, Montreal, and Calgary, and
manual fulfilment solutions in nearly 100 stores.

 

Alongside this pause to the planned go-live in Vancouver, Ocado and Sobeys
have agreed to end terms related to mutual exclusivity.

 

The Group's financial guidance for FY24 remains unchanged, together with our
target to be cash flow positive in the mid-term.  Ocado Group expects the
capital expenditure related to the MHE deployment for Sobeys CFC4, originally
expected to be incurred across FY24 and FY25, to be deferred.  The
commencement of capacity fees earned from the initial modules expected from
the Vancouver site are also deferred.

 

Contacts

 

Tim Steiner, Chief Executive Officer on +44 1707 228 000

Stephen Daintith, Chief Financial Officer on +44 1707 228 000

Nick Coulter, Head of Investor Relations on +44 1707 228 000

Jamie Kerr, Head of Communications on +44 1707 228 000

Ocado Group Press Office (Headland) on +44 (0) 20 3805 4822

 

Notes to Editors

 

About Ocado Group

 

Ocado Group is a UK based technology company trading on the London Stock
Exchange (Ticker OCDO). It provides end-to-end online grocery fulfilment
solutions to thirteen of the world's largest grocery retailers and holds a 50%
share of Ocado Retail Ltd in the UK in a Joint Venture with Marks &
Spencer. Ocado has spent two decades innovating for grocery online and
logistics, investing in a wide technology estate that includes robotics, AI
& machine learning, simulation, forecasting, and edge intelligence.

 

Person responsible for arranging the release of this announcement:

 

Neill Abrams

Group General Counsel and Company Secretary

Ocado Group plc

Buildings One & Two, Trident Place, Mosquito Way,

Hatfield, Hertfordshire AL10 9UL

email: company.secretary@ocado.com

Ocado Group plc LEI: 213800LO8F61YB8MBC74

 

 

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