Ocado investors are hoping for a positive outlook when the retail technology giant unveils its half-year results on Thursday, amid reported unrest among its top executives. The company's share price has fallen by about a quarter over the past year, pressured by the closure of some robotic warehouses and challenging consumer conditions.
Boardroom Battle and CEO Succession
The results come against a backdrop of reported boardroom conflict. Ocado chair Adam Warby and Tetra Pak billionaire Jorn Rausing, a shareholder and board member, reportedly attempted to oust founder and chief executive Tim Steiner due to concerns over the share price. However, long-term investors pushed back, with some threatening to seek Warby's removal if Steiner was ousted.
On Monday, Ocado confirmed that Steiner will remain CEO until December next year, with succession plans to be finalised at the start of the 2027-28 financial year, beginning December 1, 2027. After his successor is appointed, Steiner will stay as an adviser in a "founder role" through 2029. Shares fell further after the announcement, and investors will be keen for Steiner and leadership to outline long-term plans.
Financial Performance and Restructuring
Ocado operates a grocery retail joint venture with Marks & Spencer and a technology arm that runs robotic warehouses and platforms for supermarkets. In February, the company announced about 1,000 job cuts—roughly 5% of its global workforce—mainly at its Hertfordshire headquarters, as part of restructuring. Its technology arm recently proposed closing warehouses with partners Kroger in the US and Sobeys in Canada, though new partnerships, including one with Asda, are moving forward.
For the six months to May, analysts at JP Morgan expect 2.4% year-on-year revenue growth, driven by stronger orders from the Ocado Retail joint venture boosting logistics revenues. The group is also expected to update on its target of achieving positive cash flow in the second half of this financial year.
Analyst Views and Future Outlook
AJ Bell head of financial analysis Danni Hewson said: "The forthcoming results will give a snapshot of Ocado in the present day, but what matters more is how Ocado plans to become a stronger commercial entity longer term. Its growth plans have disappointed, so it needs bolder ideas." Investors will be watching closely for signs of a clear strategy to revive confidence and stabilise the share price.
