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. The online grocer and technology firm anticipates turning cash flow positive in the second half of the current financial year, with full-year positive cash flow expected in FY27. However, the profit was largely attributed to a corporate restructuring rather than improvements in underlying earnings, leading to a 4% drop in shares at market open.

Why It Matters

Despite the positive financial results, Ocado’s investors expressed concerns as the profit was achieved through accounting adjustments rather than operational performance. The company also announced plans to cut around 1,000 jobs, primarily at its Hatfield headquarters, as part of a cost-saving strategy aimed at achieving £150 million in savings. Ocado’s chief executive, Tim Steiner, acknowledged the impact of these job losses and expressed gratitude for the contributions of affected employees.

What’s Next

Ocado is set to merge its Ocado Solutions and Ocado Intelligent Automation divisions while reducing spending on research and development. The company aims to enhance its operational efficiency through automation, although this will result in job losses. As Ocado continues to navigate these changes, stakeholders will be closely monitoring the company’s ability to sustain profitability and improve operational performance in the coming financial year.

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