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Investing.com -- Ocado Group (LON:OCDO) shares rose more than 11% on Thursday after the company reported better-than-expected first-half results, refinanced part of its debt, and reaffirmed full-year guidance across its core divisions.
Group revenue on a pro-forma basis for the six months ended June 2 totaled £674 million, beating the Visible Alpha consensus of £634 million.
The adjusted loss before tax was £137 million, narrower than consensus expectations of £141 million.
Ocado Logistics reported revenue of £397 million, ahead of the £371 million consensus. Adjusted EBITDA for the segment came in at £19 million, above the £16 million forecast.
Ocado Technology Solutions delivered £277 million in revenue, exceeding the £263 million consensus, with adjusted EBITDA of £73 million, compared to expectations of £53 million.
Ocado Retail, now treated as an associate undertaking following its deconsolidation in April, reported a 16.3% year-over-year increase in revenue, outperforming consensus expectations of 12%. Adjusted EBITDA for the retail unit was £33 million, below the £40 million estimate.
The company completed a £300 million debt refinancing in the first half of the year and issued an additional £100 million in June, following the end of the reporting period.
It also secured a £112 million letter of credit, which RBC and Jefferies reported is sufficient to cover all remaining maturities through fiscal years 2025 to 2027.
Full-year 2025 guidance remains unchanged. Technology Solutions is expected to deliver approximately 10% revenue growth with an adjusted EBITDA margin between 20% and 25%.
Ocado Logistics continues to forecast high mid-single-digit revenue growth and an adjusted EBITDA of approximately £30 million. Capital expenditure for the year is projected at £300 million.
The company now expects around eight Customer Fulfillment Centers to become operational over the next three years, up from prior guidance of at least seven.
Shares of Ocado had been trading near decade lows ahead of the earnings release. The stock’s 11% rise on Thursday reflects the market’s response to the company’s operational performance, debt refinancing, and reaffirmed outlook.