Ocado surprised the market with a much better trading numbers

Ocado (LSE:OCDO) finished Tuesday’s session up 8.5% after a much better-than-expected performance, with a material reduction in its first-half loss thanks to improved revenue.

Its pre-tax loss narrowed to £154 million, from £290 million in the same period last year.

Ocado also raised its annual profit margin guidance for its technology division, which sells warehouse robots to other retailers, it is now expecting a ‘mid-teens’ EBITDA margin.

Revenue from the technology business increased by nearly 22%, whilst Ocado’s retail revenue grew by 11%.

Ocado, operating its joint venture with Marks & Spencer, has been described as the fastest-growing grocer for five consecutive months.

It comes at a time when Ocado’s shares have struggled – the price has nearly halved in value in 2024 to date.

Such was the optimism in the market, Ocado's share price spiked as much as 18% earlier on Tuesday.

Closing at 369.20p, the price was 8.46% higher for the day.