Ocado Raises Profit Target As Online Grocery Demand Expands
Ocado Group Plc raised its profit forecast as the pandemic boosts demand for online groceries, and agreed to buy two robotics companies for about $287 million.
The company said it expects full-year earnings to exceed 60 million pounds ($77 million) before interest, taxes, depreciation and amortization. The previous target was for Ebitda of more than 40 million pounds. The stock rose as much as 8.1% in London Monday morning.
Ocado said its joint venture with Marks & Spencer Group Plc has had strong sales, and the company said it’s buying Kindred Systems Inc. for $262 million and Haddington Dynamics Inc. for $25 million to add more robotics technology for its warehouses.
Ocado shares have gained about 78% this year.
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