Ocado still expects to sign overseas deal this year
Reuters
Published Sep 15, 2015 09:14
Ocado still expects to sign overseas deal this year
LONDON (Reuters) - British online grocer Ocado (LONDON:OCDO) remains confident of signing its first technology deal with an overseas retailer this year and remains in talks with "multiple partners", it said on Tuesday.
Ocado signed a third-party deal with British grocer Morrisons in 2013. That helped the firm in February to report the first annual pretax in its 15-year history.
It said at the time that it aimed to agree an overseas technology partnership in 2015.
"We're still targeting to sign one this year," Chief Financial Officer Duncan Tatton-Brown told reporters.
"It's been a busy summer as it would need to be if we're going to achieve the target that we set out," he said.
The company has previously talked about looking to north America and western Europe for a deal that would see it licence its technology.
Shares in Ocado, which have had a rollercoaster ride since they debuted at 180 pence apiece in 2010, have fallen 21 percent so far this year.
But they were up 0.7 percent at 318 pence at 0805 GMT, valuing the business at around 1.9 billion pounds.
Ocado, founded by three former Goldman Sachs (NYSE:GS) bankers in 2000, has divided analysts like few other stocks. Some view its home deliveries from giant distribution centres as the future of grocery shopping, while others regard it as a costly and complicated venture that will never make sustained profits.
Tatton-Brown was speaking after Ocado updated on third quarter trading.
The firm, whose range includes products supplied by upmarket grocer Waitrose (JLP.UL), said its gross retail sales rose 15.3 percent to 252 million pounds in the 12 weeks to August 9, having increased 15.7 percent in its first half. "We are pleased with the continued steady growth of our business in a retail environment that remains tough," said Chief Executive Tim Steiner.
Ocado's average orders per week rose 16.6 percent to 190,000, though average order size dipped 1.1 percent to 110.46 pounds.
Tatton-Brown said Ocado saw slightly less price competition in the quarter than in the previous six months.
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Written By: Reuters
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