UK online supermarket Ocado Retail lifted its revenue guidance for its 2023-2024 year after sales jumped 15.5% in its latest quarter, as a focus on value attracted more customers.
Ocado Retail, a joint venture between Ocado Group and Marks & Spencer, said it now expected annual revenue to rise by low double digits, up from previous guidance for mid-high single digits.
It said its core earnings margin would come in around 2.5%, unchanged from its previous view.
Over the 13 weeks to September 1, Ocado Retail said active customer numbers grew 10.3% year-on-year to 1.06 million.
Shoppers saw it as offering better value, the group said, helped by its investment in price. Selling prices were down 0.4% in the quarter compared to inflation of 2% in Britain's grocery market as a whole.
Chief executive Hannah Gibson said more customers were shopping with Ocado more often.
"Our strategy remains focused on giving our customers unbeatable choice, unrivalled service and reassuringly good value," she said.
About a third of Ocado Retail's products are M&S brands, while Ocado Retail has about a 1.8% share of Britain's grocery market according to Kantar.
Ocado Retail did not mention in its statement any progress on resolving a dispute between Ocado Group and M&S over a final payment for M&S's share of the joint venture.
