Ocado’s Profit Forecast Hiked In The Run Up To Christmas

 

Ocado's Profit Forecast Hiked in the Run Up to Christmas

Few businesses have fared as well throughout the pandemic as supermarkets.

As economic lockdowns swept across Europe, customers began hoarding supplies to see them through the coming weeks and months. As we have moved through the different levels of lockdown in the UK for the past 9 months one of the few constants has been supermarkets, which have not been forced to close their doors once.

Perhaps unsurprisingly, given the requirements for social distancing, the demand for online grocery shopping has surged this year. This surge has caused Ocado to revise its profit forecast, after revenue increased 35% in the three months up to 29 November 2020.

At the beginning of November, this year's profit was estimated at £60 million, the Ocado Group (OCDGF) has now lifted this forecast to £70 million, double the £35 million recorded last year.

Ocado Group Plc Daily Chart

Depicted: Admiral Markets MetaTrader 5 - Ocado Group Plc Daily Chart. Date Range: October 10, 2019, to December 10, 2020. Date captured: December 10, 2020. Past performance is not necessarily an indication of future performance.

In the chart above we can see how well the Ocado Group's share price has fared this year, surging from £1,078.50 on March 12, to a high of £2,902 on September 9.

Despite this news, the share price fell by more than 5% this morning at the opening of the market. However, it is expected to recover throughout the day.

Ocado Group Plc M30 Chart

Depicted: Admiral Markets MetaTrader 5 - Ocado Group Plc M30 Chart. Date Range: December 1, 2020, to December 10, 2020. Date captured: December 10, 2020. Past performance is not necessarily an indication of future performance.

The group is expected to open three new warehouses in 2021, which they say will increase their capacity by 40%.

However, the future growth of the company will depend on how consumer behaviour will change once we see a gradual return to normality. It is very possible that the increased online shopping habits formed by the pandemic are here to stay.

Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") ...

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