LONDON, July 16 (Reuters) – British technology and online grocery group Ocado said it was focused on winning new business in the U.S., where it was talking to multiple retailers, as it stuck to forecasts for cash flow to turn positive.
London-listed Ocado, which provides automated technology for distribution centres and runs its own UK online grocery business through a joint venture with Marks & Spencer, on Thursday posted half-year earnings which were boosted by one-off payments from termination fees.
Its partners Kroger in the U.S., and Sobeys in Canada recently said they would close robotic customer fulfillment centres, blaming weaker-than-expected demand.
That has pushed Ocado’s shares down 36% in the last six months, and the group is now seeking new partners in the U.S., where it says it is holding “multiple live engagements” with “significantly evolved solutions”.
Stripping out the Kroger and Sobeys payments, Ocado’s half-year adjusted earnings fell 12% to £81 million ($109.63 million), but it stuck to a forecast to turn cash flow positive in the current six-month period, and full-year cash flow positive next year.
($1 = 0.7389 pounds)
(Reporting by Sarah Young; Editing by Muvija M)
