Ocado (LSE: OCDO) FY16 Results: Strong Revenue Growth, But Costs Weigh On Margins

Executive Summary

• British online grocery retailer Ocado Group announced a 14.8% increase in revenues for the year ended November 27, 2016, marginally below the 15.1% growth that analysts expected.
• Higher SG&A expenses caused operating margins to slide by 23 basis points, with the company noting adverse impacts from the deflationary grocery market, higher wage costs and investments to grow the business.
• Ocado increased its active customer numbers by 13.9% and grew order numbers by 17.9%, but saw its average basket value decline by 2.7%.