Ocado Group PLC said it is on track to turn cash flow positive next year after a strong rise in earnings from its technology arm and as it cuts a "significant" number of jobs.
Adjusted earnings before interest, tax, depreciation and amortisation increased 59% to £178 million as group revenue swelled 12.1% to £1.4 billion in the 52 weeks to 30 November 2025.
Statutory profits swung to £395 million from a £374 million loss the previous year, reflecting a reported gain on the revaluation of its 50% stake in Ocado Retail, which is now being treated as an associate following its deconsolidation last April.
Technology Solutions, the core business that powers robot-operated warehouses for overseas grocery groups, grew revenue 13% and EBITDA 73% to £140 million.
Ocado Logistics, the UK fulfilment and delivery operation, raised revenue 11.5% and EBITDA 23% to £38 million.
Revenue for Ocado Retail, the 50%-owned online grocery joint venture with Marks and Spencer, was up 15.4% and EBITDA 87% to £84 million.
Group underlying cash flow was a negative £213 million, compared with an outflow of £199 million the year before.
Chief executive Tim Steiner said: "FY25 was a year of tangible progress for Ocado. EBITDA grew strongly, and we saw an increase of 26% in volumes processed through our international sites."
He said the group remains on track to turn cash flow positive in the second half of 2026 and deliver full year cash generation in 2027.
Steiner said a “significant number of roles will no longer be required” as Ocado reduces technology and support costs and reshapes parts of the organisation. However, no specific headcount figure or target reduction was disclosed in the results.
In the past few months, Ocado has faced retrenchment from some overseas partners, with Sobeys in Canada announcing it will close one of its robot-run warehouses and keep another site on pause, while in December US customer Kroger closed three customer fulfilment centres.