Shares in Ocado Group PLC (LSE:OCDO) surged 18% after it reported smaller losses for the first half of the year and raised its earnings and cashflow guidance for the full year.
The online grocery group posted interim numbers showing revenue of £1.5 billion for the 26 weeks to 2 June, up 12.6%.
Its Technology Solutions arm, which has helps run robotic warehouse tech for 13 overseas retailers, grew sales 22%; Ocado Logistics, which provides services to UK clients, grew 6%; and Ocado Retail, its joint venture with Marks & Spencer, grew 11%.
Group underlying profit (EBITDA) mushroomed more than fourfold to £71.2 million, with all three segments in positive territory.
Its reported losses before tax shrank to £154 million from £290 million a year ago.
Ocado said it expects underlying cash flow to improve by £150 million, up from £100 million previously, and for the Technology Solutions arm to "achieve a mid-teens EBITDA margin", compared to at least 10% previously.
Boss Tim Steiner, who lost the support of one longstanding bullish analyst yesterday, who downgraded the shares after a number of overseas clients paused or stopped their Ocado developments, said: "We have come through an unprecedented period for online grocery, with multiple years of high food inflation following a surge in demand during the pandemic.
"The global channel shift to online has now resumed and Ocado is uniquely well-positioned to take advantage of the opportunity."
He said Ocado has 13 supermarket chains around the world that use its 'Ocado Smart Platform', with the current total of 22 robot-operated warehouses expected to rise to 25 by the end of the financial year, while there are "several 'live' discussions" ongoing to add further clients.