LONDON (dpa-AFX) - Ocado Group (OCDO.L), a technology provider for retailers, Wednesday said its online grocery joint venture Ocado Retail is expected to post a decline in sales and EBITDA margin for 2022 than previously anticipated. The shares of Ocado Group were losing around 5 percent in London trading.
For the full year, Ocado Retail now expects its sales growth to be in the low single digits as against its previous guidance for around 10 percent sales growth. The revision reflects an impact of the rising cost of living crisis, with a further rise in utility prices anticipated in the autumn.
The retailer also projects a low single digit EBITDA margin for the year due to slower than expected sales growth and the impact of higher utility and fuel costs.
However, the company also noted that 'the EBITDA margin will recover towards a high mid-single digit level over time as it recovers the fixed costs of new capacity and when the impact of the current cost of living crisis begins to abate.'
In London, Ocado Group shares were trading at 730 pence, down 4.58 percent.
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