Ocado Group PLC on Thursday said it has raised its full-year revenue guidance following positive third-quarter growth in customers and orders from Ocado Retail.

Ocado Retail is a joint venture between grocer and warehouse technology firm Ocado and retailer Marks & Spencer.

Ocado said its third-quarter Retail revenue for the 13 weeks to September 1 was £658.0 million, up 16% on-year from £569.6 million. Average orders per week rose 15% to 437,000 from 381,000.

The company said this was driven by a 10% year-on-year growth in active customers, which rose to 1.1 million from 961,000, as well as improved frequency year-on-year as slot availability and overall proposition improved.

Ocado Retail upgraded its 2024 guidance to low double digit revenue growth from mid-high single digit growth. Its guidance for adjusted earnings before interest, taxation, depreciation and amortisation remained the same at circa 2.5%, excluding annual Hatfield fees of £33 million.

Ocado Retail’s Chief Executive Officer Hannah Gibson said: ‘Our strategy remains focused on giving our customers unbeatable choice, unrivalled service and reassuringly good value. We’re seeing the momentum of this, with more customers shopping with us more often, getting even better service at better value.

‘We know what our customers love, and we’re focused on our proposition every day. This includes our widest ever choice including more M&S food, more convenience with better availability of delivery slots and products, further improving our high perfect order rate and better value for money through our Ocado Price Promise and our latest big price drop. We’re pleased with the progress we’re making and excited about how much more there is to deliver.’

Shares in Ocado Group were up 7.2% at 374.60 pence each in London on Thursday morning.

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