Ocado - comment

Whilst Ocado’s new deal with Korean partner Lotte will only move the cash flow needle modestly, the successful landing of a signing of a new customer in the International business lifts a weight from the bonds and equity. Management has now delivered on its promise of additional orders for customer fulfilment centres (CFCs). Markets had been wary of the failure to add new customers to the order book post covid. The six initial CFCs will entail some upfront payments from Lotte to Ocado (normal in these agreements), although the impact on cash flow will be marginal in the next 12 months and slightly negative in the next three years as the first six CFCs are built between now and 2028.
https://ocadogroup.com/media/qygpcf1e/partnership-between-ocado-and-lotte-shopping.pdf