Ocado (OCDO)

[dealtn]

Trading update this morning well received by the market. Share price approaching all time highs.

https://www.investegate.co.uk/ocado-gro ... 00049634Y/

Interesting that Q3 growth was faster than Q2, when Q2 would have been the highest Covid demand with lockdown shielding at its maximum. (I haven't checked but this could reflect the relative strength/weakness of Q2/Q3 last year, of course). What of course might have happened is a combination of more awareness of the company's offering, and more potential demand for its products with the shift from Waitrose to Marks and Spencers. The update covers the period up to End August, with the switchover happening on Sept 1st. We will see more of this story in the next update.

The company does mention in its "Highlights" section of the greater demand for MKS over Waitrose, and that the slight increase in available products will grow even further as M&S full food range gets added. "Excitement around the launch of M&S products has increased the average basket by around 5 items and is driving strong forward demand including our biggest ever forward order day, on the day of launch. 98% of customers are already shopping M&S."

The company is targeting an increase in turnover by 40% by 2021, so growth ambitions aren't seen as an issue.