Ocado, the British online supermarket and tech firm, announced on Thursday that its top priority for the upcoming financial year is to generate cash instead of spending it. This statement came as the company reported a 76.5% increase in its underlying earnings for the first half. Ocado operates its online grocery business through a joint venture with Marks & Spencer (M&S). However, most of its market value comes from licensing its advanced robotic warehouse technology to retailers globally. The company said its main focus is to become cash flow positive in its 2025/26 financial year, starting in December, by cutting costs. It aims to be fully cash-positive for the entire year after that.

Ocado’s share price has dropped 35% over the past year, due to investor concerns about slow expansion of warehouse sites for existing grocery partners and a lack of new tech licensing deals. Its key U.S. partner, Kroger, has delayed the rollout of its automated fulfilment centers (CFCs), and Canadian partner Sobeys put its fourth warehouse project on hold last year. However, Ocado recently deepened its collaboration with Spanish supermarket Bon Preu and has eight more CFCs planned to open over the next three years.

In the first half of its 2024/25 fiscal year, Ocado reported adjusted EBITDA – its preferred profit metric – of £91.8 million, up from £52 million a year earlier. Revenue rose 13.2% to £674 million. The company also posted a statutory profit of £611.8 million, compared to a £153.3 million loss in the same period last year. This turnaround is largely due to accounting changes related to its stake in the Ocado Retail JV with M&S.