Ocado’s FY22 performance was weaker than our expectations. The underlying PBT of -£500.8m was 25% below the street expectations, attributable to a weaker EBITDA margin and high D&A (following higher investments). However, the company seems to be struggling on multiple fronts – operating losses and high cash outflows are the most pressing pain-points, and any material respite looks difficult in the near-term. This also raises the risk of a fresh capital funding requirement. We will reduce our ear ....
01 Mar 2023
Investors spooked by poor profitability and high cash outflow
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Investors spooked by poor profitability and high cash outflow
Ocado Group PLC (OCDO:LON) | 454 0 0.0% | Mkt Cap: 3,764m
- Published:
01 Mar 2023 -
Author:
Nishant Choudhary -
Pages:
4
Ocado’s FY22 performance was weaker than our expectations. The underlying PBT of -£500.8m was 25% below the street expectations, attributable to a weaker EBITDA margin and high D&A (following higher investments). However, the company seems to be struggling on multiple fronts – operating losses and high cash outflows are the most pressing pain-points, and any material respite looks difficult in the near-term. This also raises the risk of a fresh capital funding requirement. We will reduce our ear ....