Ocado Retail Ltd reported modest growth in quarter-one revenue as increased prices offset the amount shoppers were putting in their baskets.
The joint venture between Ocado Group PLC (LSE:OCDO) and Marks and Spencer Group PLC (LSE:MKS) was updating investors on trading for the 13 weeks to 26 February 2023 and said guidance remains unchanged.
Retail revenue rose to £584mln, growth of 3.4% against the same quarter last year, average orders per week at Ocado.com improved to 381,000, up 3.6% year-on-year, while the number of active customers reached 951,000 at the end of the quarter, up 13.8% year-on-year.
The rise in customer numbers reflected continued growth in new customers alongside holding onto existing shoppers (beyond the fifth shop), the company said.
The average basket value was flat, with a 7.5% fall in basket size, to 45 items, offset by an 8.3% increase in average selling price.
Full-year guidance was held, with the firm expecting mid-single digit growth in revenue with an improving trajectory during the year and marginally positive EBITDA.
Chief executive Hannah Gibson said: “While the trading environment remains challenging, we expect to build momentum through the second half of the year, as we improve our proposition, grow our customer base, and no longer lap Covid shopping behaviours. This solid 2023 performance will enable us to return to sales growth and profitability."