What Happened
Ocado Group has reported a significant increase in profitability for the 52 weeks ending 30 November 2025. Group revenue rose by 12.1% to £1.36 billion, while adjusted EBITDA surged by 59% to £178 million. The online grocer anticipates turning cash flow positive in the second half of the current financial year, with full-year positive cash flow expected in FY27.
Despite these positive figures, Ocado’s shares fell by 4% at the market open on Thursday, as investors expressed concerns that the profit was largely due to accounting adjustments related to corporate restructuring rather than improvements in operational performance.
Why It Matters
Ocado’s profitability marks a pivotal moment for the company, which has long struggled to achieve consistent profits. The growth in revenue from its Technology Solutions division, which saw a 13.0% increase, and the substantial rise in EBITDA margins from 16.2% to 25.0% are noteworthy. Ocado Logistics also contributed positively, with EBITDA rising to £38 million from £31 million.
However, the company is also facing challenges, including plans to cut approximately 1,000 jobs as part of a cost-reduction strategy. Two-thirds of these job losses will occur in the UK, primarily affecting roles at the company’s headquarters in Hatfield. CEO Tim Steiner acknowledged the difficult decision, emphasizing the company’s commitment to support affected employees.
What’s Next
Looking ahead, Ocado aims to achieve savings of £150 million through its restructuring efforts, which will involve merging its Ocado Solutions and Ocado Intelligent Automation divisions and reducing spending on research and development. The company is also forecasting a further improvement in margins for the upcoming year.
As Ocado navigates these changes, stakeholders will be closely monitoring the impact of job cuts and restructuring on its operational efficiency and overall financial health.
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