Ocado Group reported revenue of £1.04 billion for the first half of 2026, boosted by payments linked to the closure of Kroger and Sobeys fulfilment sites, as the UK technology company prepared to launch its new online grocery partnership with Asda in FY27.
Revenue for the 26 weeks ended 31 May increased 54% from £674 million a year earlier. However, excluding the impact of the Kroger and Sobeys closures, revenue rose only 1% to £684 million.
Adjusted EBITDA reached £432 million, compared with £92 million in the first half of 2025. Without the closure-related impact, adjusted EBITDA fell to £81 million from £92 million.
The difference reflects £351 million connected to decisions by Kroger in the US and Sobeys in Canada to close customer fulfilment centres using Ocado technology. The payments strengthened the reported results but do not represent recurring trading income.
Ocado recorded statutory pre-tax profit of £17 million, down from £607 million a year earlier. After tax, the group posted a £33 million loss.
Ocado Retail growth supports results
Ocado Retail, the online supermarket joint venture owned equally by Ocado Group and Marks & Spencer, increased revenue by 15%. Orders rose 13%, while adjusted EBITDA more than doubled to £73 million from £33 million.
The retail operation also recorded adjusted earnings before tax of £12 million, reversing a £17 million loss in the previous first half.
Operational efficiency improved across its fulfilment network. Units processed per hour increased 11%, while total customer fulfilment centre costs, including labour, fell to 5.7% of sales.
Ocado Logistics revenue rose 8% to £428 million, with adjusted EBITDA increasing to £22 million from £19 million.
Technology Solutions generated revenue of £609 million and adjusted EBITDA of £410 million when closure-related income was included. Excluding that impact, recurring technology fees declined 3%, although they increased 5% when fees associated with the closed Kroger and Sobeys sites were also removed.
International volumes processed through Ocado-powered fulfilment centres increased 27%. Its global network now includes 23 customer fulfilment centres, with an average of 115 live automation modules.
The company has installed its On-Grid Robotic Pick system in 14 centres. Its Swift Router technology, designed to support orders with shorter delivery times, is operating in 15 centres.
Ocado is also working with four retail partners to connect their online operations with multiple third-party delivery platforms.
The company identified the US as a priority market and said it had several active commercial engagements. Its effort to attract new customers comes after Kroger and Sobeys reduced their use of Ocado’s large automated fulfilment centres.
In the UK, Ocado will provide technology to support the development of Asda’s online grocery business. The partnership will cover ecommerce, in-store order fulfilment and last-mile delivery capabilities, with implementation expected to begin in FY27.
The agreement gives Ocado another major UK supermarket customer alongside Morrisons and its Ocado Retail venture with M&S. It also demonstrates the company’s move towards offering retailers a broader combination of centralised automation, store-based fulfilment and delivery software.
Ocado said most measures under its £150 million cost-reduction programme were implemented during the second quarter. The financial benefits are expected to become more visible during the second half of 2026 and in FY27.
Underlying cash outflow increased to £147 million from £108 million. However, closure-related payments helped produce a total net cash inflow of £25 million.
The group ended the period with £765 million in cash and cash equivalents, alongside an undrawn £300 million revolving credit facility. It plans to meet £350 million of debt maturities through FY27 using existing cash.
Ocado expects to produce positive cash flow in the second half of 2026 and become cash-flow positive for the full year in FY27. Its full-year results are scheduled for 25 February 2027.
The company has also begun a formal long-term succession process for chief executive Tim Steiner. The next stage will centre on delivering the Asda rollout, securing additional technology customers and showing that growth can continue without one-off closure payments.
