Results centre

FY Preliminary Results for 2016

Highlights

Key financial and statutory highlights

FY 2016
£m
FY 2015
£m
Variance
%
Gross sales1(Retail) 1,267.4 1,115.7 13.6
Revenue2 1,271.0 1,107.6 14.8
EBITDA3 84.3 81.5 3.4
Profit before tax and exceptional items 14.5 11.9 21.8
Profit after tax 12.0 11.8 1.7
Cash and cash equivalents 50.9 45.8
Net debt 164.9 127.0
External net debt (cash)4 56.2 7.5

1. Gross sales include VAT and marketing vouchers
2. Revenue is online sales (net of returns) including charges for delivery but excluding relevant vouchers/offers and VAT. The recharge of costs to Morrisons and fees charged to Morrisons are also included in revenue
3. EBITDA is a non-GAAP measure which we define as earnings before net finance cost, taxation, depreciation, amortisation, impairment and exceptional items
4. External net debt is the net debt less amounts owing to MHE JVCo of £108.7 million (2015: £119.5 million)
5. Customers are classified as active if they have shopped on ocado.com within the previous 12 weeks
6. A CFC is considered mature if it has been open for 12 months by the start of the half year reporting period

Strategic objectives

Our strategic objectives of driving growth, maximising efficiency and utilising our proprietary knowledge apply to both our own retail business and our current and potential platform operations. We support our objectives through a framework of actions intended to deliver long term shareholder value.

The key actions within our framework are to:

  • Constantly improve our proposition to customers;
  • Strengthen our consumer brands;
  • Continuously develop ever more capital and operationally efficient infrastructure solutions;
  • Enhance our end-to-end technology systems; and
  • Enable Morrisons’ and future partners’ online businesses.

CEO statement

"We are pleased to announce results today which reflect robust trading in our core business and shows continued progress against our strategic objectives in what has been a challenging retail environment. Over the course of the last year, we grew our active customer base by almost 14%, with growth in average orders per week approaching 18%, testament to the strength of our customer proposition, market position and technology.

"We commenced operations at our new Customer Fulfilment Centre in Andover, which has the first installation of our new proprietary technology. At the same time, we have made good progress in improving the efficiency and throughput of our existing operations, increasing our capacity from existing facilities by over 20,000 weekly orders. These developments position us well for future growth, whilst improving our returns and enhancing the service we can offer our customers.

"In this ever evolving retail environment, we look forward to further developing our capabilities through innovation, creating the next generation eCommerce capabilities that will ensure our offer remains compelling for both retail and OSP customers alike."

Annual Report 2016

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