Ocado shares rise 5.25% in intraday trading after strong gains in previous session
Key Facts
Ocado shares rose 5.25% during trading on 20 October 2026, according to a live reading published by Investing.com, extending gains from the previous session. The stock had risen 8.93% in the 19 October session before adding further gains during the following session. The latest percentage gain reflects an intraday move, rather than the day's final closing performance. The advance follows a sharp decline accompanying the company's results announcement in July, when Reuters said the shares were down 14% at the time of its report. The stock then hit a 13-year low, against a different backdrop from the rally recorded over the October sessions.
On financial performance, Ocado's results filing with Britain's Financial Conduct Authority showed underlying cash outflow in the fiscal first half rose to £147 million. Outflow in the comparable period was £108 million, excluding the effects of the closure of Kroger and Sobeys centres. The group reported adjusted earnings before interest, tax, depreciation and amortisation of £81 million in the first half. Earnings on the same measure were £92 million in the comparable half, also excluding the effects of the centre closures. The widening cash outflow thus coincided with a decline in the group's adjusted earnings for the period, according to the figures in the filing.
Revenue grew 1% to £684 million in the fiscal first half, according to the results announcement published on Ocado's website. The company excluded the effects of the closure of Kroger and Sobeys centres when presenting that growth, as it did in the comparisons for adjusted earnings and underlying cash flow. The modest revenue growth came alongside a £150 million cost-cutting programme on which the company reported progress in its first-half update. Ocado said in the announcement that "£150 million of cost reductions are on track". The amount represents the targeted savings under the programme discussed by the company, while the revenue, earnings and cash flow figures formed part of its fiscal half-year results.
On partnerships, Ocado and Asda agreed in May 2026 to enter an e-commerce partnership, according to Ocado's announcement concerning the British partner. The agreement aims to develop Asda's online business in the United Kingdom, adding a domestic collaboration to the group's work with its partners. Internationally, Ocado announced the launch of its first fulfilment centre with Lotte Shopping in South Korea. The Korean announcement concerns the launch of an operational centre, alongside the agreement to develop online operations that the group announced with Asda. These initiatives spanned the British and South Korean markets, while a separate announcement covered a European partnership with Danish company Nemlig.
According to the Danish partnership announcement, Nemlig expects to transfer its existing order volumes to the new fulfilment centre in 2028. Ocado said the partner expects to complete this transition quickly, in a move linked to improving fulfilment operations. On the group's financial targets, Tim Steiner said in the first-half results: "We will be cash flow positive in the second half of the year." He added that the company aims to be "cash flow positive across the 2027 financial year". This target distinguishes between the anticipated shift during a fiscal half-year and achieving positive cash flow for a full year, following the underlying outflow the group recorded in the first half.
Ocado's financial calendar lists 25 February 2027 for the announcement of its full-year results for fiscal 2026. These are the annual results listed in the company's calendar, compared with the first-half results that included an update on the cost-cutting programme and cash flow targets. The scheduled announcement falls in the year in which the group aims to achieve positive cash flow for the full financial year. However, Ocado describes the results date as provisional and cautions in the calendar that it is subject to change. The partnership plan puts the transfer of Nemlig's existing order volumes to the new centre in 2028, on an operational timetable extending beyond the anticipated annual results date.