Kroger has decided not to proceed with the Charlotte CFC, so the payment to Ocado has risen by $100m to $350m. Kroger will continue to
Read MoreThe FT article on the Ocado/Kroger CFC closures fleshes out a few interesting points. We still expect CFCs to be the major part of the
Read MoreThe CFC model is not dead, but is evolving. ODO Systems is a competitor to Ocado, and we agree with the sentiment that
Read MoreKroger’s closure of three sites was at the worst end of our expectations. The closure fees from Kroger for the CFC closures imply a valuation of
Read MoreFor now, M&S is not discussing a purchase, but we still expect M&S to eventually buy Ocado out of their UK joint venture. Taking
Read MoreCalling the remaining £55m of the 3.875% 2026 SUNs is no surprise and will have only a
Read MoreAppointing an executive to push Ocado into non-grocery logistics makes sense as the company courts pharma
Read MoreA bearish note on Ocado is pressurising the equity. Our worst-case scenario is that the Kroger rollout is halted; this equity note presumes two
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Kroger’s review of its e-commerce strategy is driven by the need for e-commerce profitability as opposed to disenchantment with Ocado; E-commerce sales grew
Read MoreAldi grew sales 6.3% (vs inflation of 5.2%) and continues to close the gap on Morrisons. Given that grocery inflation is at the same
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Technology Revenues of £277m were ahead of our expectations, and this is reflected in EBITDA of £73m vs our forecast of £51m (excluding Ocado Retail). Capex of
Read MoreOcado drawing the LC line cannot have surprised the Bank of Nova Scotia, given the cost of external bond debt. High-yield issuance
Read MoreA new competitor for Ocado, with a former Ocado executive as CEO. Veloq launched in 2014 and claims to deliver 1.3m orders a
Read MoreOcado aims to avoid costly equity issuance for now and prefers high-coupon, non-dilutive debt. Today’s transaction will increase the
Read MoreThe 11% coupon on the new £300m SUN is cheaper than raising equity. Also, coming within the price talk (albeit the wide end), the sticker shock for
Read MoreLosing the head of the technology business is a blow, but Tim Steiner will be perfectly capable of stepping in in the short term. However, Steiner will want to
Read MoreAs tariffs continue to influence market dynamics, we've taken a comprehensive look across our coverage to highlight the names most likely to be affected. For full transparency, we've also included those that remain unaffected—it's just as important to understand where the impact isn't being felt.
The idea here is
Read MoreWe still maintain that the row between Ocado and M&S is a negotiating point regarding the price that M&S will eventually pay to buy
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We are puzzled by the fall in share price after the results and call. We do think that management may fill any funding gap with debt rather than equity, but that will eventually be a
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