Online grocer Ocado Retail, the joint venture between Ocado Group PLC (LSE:OCDO) and Marks and Spencer Group PLC (LSE:MKS), warned that the cost of living crisis, soaring energy costs and the Ukraine crisis may impact its revenue outlook this year.
“These uncertainties over inflation, which have increased significantly in recent weeks due to the war in Ukraine, the overall level of demand and the continued return to pre-Covid shopping patterns, mean that while easier comparatives, strong customer demand, and further growth in capacity should see revenue growth end the year in the high-teens, the full-year growth rate may be closer to 10%,” the company said.
Although customer orders grew 11.6% for the 13 weeks to 27 February, revenue fell 5.7% in the quarter against a challenging comparative period a year earlier.
"Long term, we are confident that the trajectory of growth remains positive,” Melanie Smith, Ocado Retail's chief executive officer said in a statement Thursday.