What Happened
Ocado Group has reported a significant increase in profitability for the 52 weeks ending 30 November 2025, with group revenue rising by 12.1% to £1.36 billion and adjusted EBITDA climbing 59% to £178 million. However, the company announced plans to cut around 1,000 jobs as part of a cost-reduction strategy.
Why It Matters
Despite the reported profit, which included a statutory profit of £395 million, investor sentiment has been lukewarm. This is largely due to the profit being attributed to a corporate restructuring rather than improvements in operational performance. Ocado’s shares fell by 4% following the announcement. The job cuts, primarily affecting roles at its Hatfield headquarters, are part of a broader plan to save £150 million, which includes merging divisions and reducing spending on research and development.
What’s Next
Ocado expects to achieve positive cash flow in the second half of the current financial year, with full-year positive cash flow anticipated in FY27. The company aims to enhance its operational efficiency through automation, despite the associated job losses. Ocado’s management has expressed gratitude to affected employees and committed to supporting them during the transition.
