Online grocer Ocado Group PLC (LON:OCDO) saw its gross retail sales grow by 13.1% in its first quarter, unchanged on the same stage in the previous year, as average order volumes rose but order amount fell reflecting pricing pressures.
In a trading statement for the 13 weeks to February 26, the FTSE 250-listed firm saw its gross retail sales rise to £352.4mln, up from £311.6mln in 2015, with group gross sales up 13.3% to £384.7mln.
It said its average orders per week rose by 16.7% to 252,000, up from 216,000 a year earlier, driven by both new and existing Ocado customers.
READ: Ocado full-year results ...
But the average order size fell by 1.6% to £110.84, albeit a slower rate of decline than in previous quarters.
Ocado said the fall in the first quarter was primarily driven by a reduction in multi-buy promotions and further take up of the Ocado "Smart Pass", which drives customers to shop more frequently and increases customer retention
Tim Steiner, Ocado's chief executive officer, said: "We are pleased with the steady progress and growth achieved in the period, as shoppers continue to embrace our proposition for online shopping.”
He added: "While the market remains very competitive, there are the first signs of a change in market pricing dynamics coming through. However, it remains too early to predict how this will unfold throughout the year, and in particular is dependent on any future currency movements."
The group said it had cash and cash equivalents of £41.2mln at the period end and external borrowings of £130.2mln.
In early trading, Ocado shares were 1.1%, or 2.9p higher at 261.1p.
In a note to clients, analysts at Shore Capital called the trading update "unspectacular".
They said: "All in all, therefore, we see this as good and steady sales growth from Ocado but not progressive, we doubt material adjustments to market consensus today (14th March 2017) fron previously downgraded figures (again) whilst the elusive international queue of potential partners must be just getting longer and longer with unending patience and understanding evident on behalf of the gathering crowd."
The analysts said they still have their recommendation for Ocado 'under review'.
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