Proactive Investors - Ocado (LON:OCDO) Retail has raised its full-year sales guidance after reporting improved revenue growth for the third quarter, driven by growth in customer numbers.
The business, which is a 50-50 joint venture between Ocado Group PLC and Marks and Spencer (LON:MKS), said it now expects to grow its top line by a "low double digit" percentage up from its previous guidance of "mid-high single digits" growth.
There was no change to profit margin guidance, remaining at an EBITDA margin of circa 2.5%, as the revenue growth came alongside a 0.4% fall in average selling prices, following a 1.5% rise in the first half.
In the third quarter, the JV increased revenues 15.5% to £658 million, having grown turnover 11% in the first-half of the year.
The volume of items sold grew 15.4% compared to the third quarter last year and average orders per week grew by 14.7% to 437k, up from 9.2% growth in the first half.
Active customer numbers rose 10.3% to 1.06 million (8.1% in the first half), boosted by improved "slot availability" and the overall grocery proposition improved.
The average basket value was "broadly flat" versus last year at £120.97, though down from £123 in the first half. Basket size was slightly up year-on-year.
Hannah Gibson, chief executive of the joint venture, said Ocado Retail was "seeing the momentum" of its strategy of improving choice and prices with "unrivalled service".
She said customers were now being offered the "widest ever choice including more M&S food, more convenience with better availability of delivery slots and products, further improving our high perfect order rate and better value for money through our Ocado Price Promise and our latest Big Price Drop".