Ocado Group PLC (LSE:OCDO) shares whizzed 13% higher after the online delivery group reported a 13.2% increase in revenue and a 77% increase in underlying profits in the first half of the year.
Revenue of £674 million was generated in the 26 weeks to 1 June, with 14.9% growth from the Technology Solutions arm, which builds robot-run warehouses (or 'customer fulfilment centres') for overseas grocery groups, and 12.1% from Ocado Logistics, which operates CFCs and delivery services for UK partners, Ocado Retail and Morrison Supermarkets.
Ocado Retail, a 50-50 joint venture with Marks and Spencer Group PLC (LSE:MKS), was deconsolidated from the core business in April.
This led to the group reporting a swing to a statutory profit of £611.8 million in the period due to the accounting changes resulting in a gain of £782.6 million on the statutory valuation of the 50% stake.
Full-year guidance remained unchanged, for 10% revenue growth and EBITDA margins of 20-25%.
The medium-term outlook was confident, with eight CFCs going live over the next three years, including Warsaw this year, Charlotte and Phoenix for US client Kroger early in 2026, as well as Hachioji, Busan, Kuki and Gyeonggi for Korea's Lotte in 2026 and 2027.
An "improved cash trajectory" is expected too, with underlying cash outflow of circa £200 million anticipated this year, and the "core priority" is to turn cash flow positive during the 2026 financial year.