Ocado Group, the UK's largest online-only food retailer, posted an annual pre-tax profit for the first time in its 15-year history.
The company said that it is in talks to bring its warehousing and logistics expertise to international partners.
Profit before tax was £7.2 million in the year through 30 November, the company said, compared with a prior-year loss of £12.5 million. Revenue gained 20 per cent to £949 million.
Founded in 2000 to deliver groceries to online customers in south-eastern England, Ocado is pushing new boundaries.
The company signed a 25-year accord with Wm Morrison Supermarkets about a year ago, helping that grocer make a belated entry into the online market.
Now, it is looking to team up with overseas partners and may sign an agreement in North America, Latin America, Europe or Asia during the first half of the year, CEO Tim Steiner said.
“The future is incredibly bright -- it could be a scalable, highly profitable technology-provision business, rather than a small online supermarket,” said Bryan Roberts, an analyst at Kantar Retail. “It’s easy to forget it’s just a start-up operating in one of the most competitive markets on earth.”
Ocado rose 2.1 per cent to 424 pence at 8.55am in London. The shares remain close to the level reached at the end of 2013, a year in which they surged about fivefold.
The deal with Morrisons “paves the way” for similar agreements in the future, Steiner said on a call with reporters, adding that the outlook for the UK grocery market remains competitive.
"We find that by investing in the proposition, we increase customer demand,” the CEO said. Ocado is “adding range, investing in price, order accuracy and online fulfilment, and in user interfaces."
Steiner sought to downplay concern that the company’s agreement with the competing Waitrose chain may be terminated prematurely. The accord allows Ocado to use the Waitrose brand on its website and vans until 2020.
News by Bloomberg, edited by ESM
