Ocado - comment

Whilst a lot of focus will be on the 1H22 performance of the Ocado Retail joint Venture we see positives in the overall group. Our thesis is not changing on the back of this set of numbers. Continuing the momentum in the key international business is going to be the core of Ocado’s valuation growth and in 1H the international business added another 9 CFC orders and a new partner (Auchan Polska). The challenges at Retail are not to be sniffed at, but UK online market share is 12% vs ~7% pre-pandemic and Ocado continues to add customers. FY retail Revenue/EBITDA guidance was maintained but we can see the newly appointed interim Retail CEO looking to trim expectations unless there is a rapid improvement.