Ocado Group PLC (LSE:OCDO) shares fell 10% despite an increase in underlying profit being reported for last year and continued confidence in producing positive cashflows by 2026.
Results for 2024 from the grocery delivery group show revenues of £3.2 billion, down 14.1%, as its Technology Solutions arm saw a decline of 18%, Ocado Logistics 7.6% and the Ocado Retail joint venture with Marks and Spencer Group PLC (LSE:MKS) fell 14%.
The FTSE 250-listed group recognised its the JV as a discontinuing operation, as it will be deconsolidating it this year, with control likely passing to M&S in 12 months.
Adjusted EBITDA was improved at all divisions, with the group number coming in at £153.3 million, up from £51.6 million the year before. Statutory losses were reduced to £374.3 million from £387 million, after adjusting items of £4.8 million.
There was an underlying cash outflow of £223.7 million, which was down from £472.5 million last time.
This year is expected to see another outflow of "around £200 million" as guidance was given for the core Technology Solutions arm to grow revenue 10% and the Ocado Retail expands more than 10% with underlying EBITDA margins of around 4%.
** Update: Adds details, share price **