Sunderland newcomer Ocado continues with expansion plans as it reports strong trading results

Online supermarket Ocado has raised its full-year guidance for the second time in a little over a month as it benefited from stricter Covid-19 restrictions.

In January, the first of its workers moved into its new offices on the top two floors of The Beam, which has been built on the former Vaux site in Sunderland city centre.

The company, which began to deliver Marks and Spencer items earlier this year, said at that stage its site in the city would create 300 jobs.

It has since announced the launch three new warehouses in 2021, boosting capacity by 40% and generating more delivery slots.

Today, Thursday, December 10, Ocado said it expects Ebitda – earnings before interest, tax, depreciation and amortisation – to hit £70 million this financial year.

It is up from £60 million in Ocado’s previous forecast, which was itself only set in early November.

Before that, previous guidance had been £40 million.

Retail revenue grew nearly 35% to £579.6 million in the 13 weeks to the end of November, Ocado said.

Ocado Retail chief executive Melanie Smith said: “Despite exceptional demand during the period, we have high rates of on-time customer delivery and low rates of substitutions.

“This, together with our commitment to competitive prices and the freshest produce available, all delivered in a way that minimises handling and maximises hygiene, has strengthened our credentials as the UK online grocery market leader in terms of customer experience.”

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