Ocado Group PLC on Tuesday reported ‘good progress’ as revenue rose across the company’s three divisions.

The Hatfield, England-based online grocer and technology licensor said in the half year that ended June 2, its pretax loss narrowed to £153.9 million from £289.5 million a year before.

Ocado shares were up 15% to 392.86 pence each in London on Tuesday morning. Grocery market analysts Kantar separately revealed on Tuesday that Ocado was the fastest-growing grocer for the fifth month in a row, with sales up by 11% over the 12 weeks to July 7.

Ocado’s half-year revenue was up 13% to £1.54 billion from £1.37 billion. Technology Solutions revenue increased 22% to £241.4 million while Retail revenue was up 11% to £1.31 billion. Logistics revenue added 6% to £354.0 million.

Operating costs fell 3.5% to £1.68 billion from £1.62 billion.

Chief Executive Officer Tim Steiner said: ‘Today’s results illustrate good progress as we support thirteen of the world’s leading grocers to grow their online business with our technology. We have come through an unprecedented period for online grocery, with multiple years of high food inflation following a surge in demand during the pandemic.

‘Our technology is delivering high levels of productivity and customer satisfaction. In the UK, Ocado Retail continues to lead the way in online grocery, and internationally we have received orders for new capacity, with a number of our partners reporting strong digital sales growth year-on-year.’

Currently, 13 partners use the Ocado Smart Platform, an end-to-end e-commerce, fulfilment and logistics solution.

There are now 22 live customer fulfilment centres with plans in place to increase this to 25 by the end of the year.

Looking ahead, Ocado said it expects to see further revenue gains, forecasting 15% to 20% growth for the full year from Technology Solutions.

Ocado anticipates stable revenue for Logistics, with high single-digit percentage volume growth. Retail revenue growth is expected to be a mid-to-high single digit percentage, benefiting from a lower inflation rate as food prices continue to normalise.

In light of this, adjusted earnings before interest, tax, depreciation, and amortisation margins for the full year are forecasted to be in the mid-teens, up 10% from previous guidance.

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