Ocado reports 6% rise in first half-earnings

British online grocer Ocado reported a 5.7 per cent rise in first-half core earnings and said talks to secure a long awaited overseas deal were continuing.

The firm, whose range includes products supplied by upmarket grocer Waitrose and also has a distribution agreement with Morrisons, Britain's No. 4 supermarket, said on Tuesday it made earnings before interest, tax, depreciation and amortisation (EBITDA) of £40.4 million in the six months to May 15th. That compared with £38.2 million made in the same period last year.

Analysts see winning international licensing deals in north America and western Europe as the key driver of Ocado’s stock market valuation. However, the company missed a target of securing one by the end of 2015 and is still to announce one.

“Discussions with many potential international retailers to adopt the Ocado Smart Platform solution continue,” it said.

Ocado said the UK grocery market remained competitive with ongoing price deflation.

Reuters