Ocado Group PLC on Tuesday said it is confident to continue ‘market-leading’ sales growth and volume momentum in the new financial year, as retail revenue climbed comfortably in the fourth quarter of its financial year that ended in December.

The Hatfield, Hertfordshire-based licenser of grocery technology said retail revenue for the fourth quarter, which ended December 1, grew 18% on-year to £715.8 million from £609.4 million ‘as we continued to deliver on our strategy of unbeatable choice, unrivalled service and reassuringly good value’.

Volumes increased 17% to 271.6 million total items from 232.2 million items on Ocado.com, while average orders also rose 17% to 476,000 per week, from 407,000.

For the full year, Ocado says Retail revenue grew 14% to £2.69 billion while volumes and average orders per week both grew 13%.

The company added that it has achieved ‘strong earnings before interest, tax, depreciation and amortisation growth’ due to topline growth ‘as well as continued focus on cost and efficiency’.

Further, Ocado celebrated ‘another record-breaking Christmas, with our highest ever level of sales over the peak Christmas trading period.’

It noted that the Christmas period was boosted by M&S party foods such as hot honey halloumi and pigs in blankets, as well as cheese and an ongoing popularity of low and no alcohol drinks.

Looking ahead, the company said: ‘We have confidence that the business will continue to show market-leading sales growth and volume momentum in financial 2025. Moreover, we expect to make further progress on driving operational efficiency and scale leverage, continuing on our journey towards a high mid-single digit adjusted Ebitda margin in the mid-term.’

Ocado will release results for the financial year ended December 1 on February 27.

Ocado shares rose 10% to 296.99 pence each on Tuesday morning in London, giving it a market capitalisation of £2.42 billion.

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