Ocado investors will be hoping the retail technology giant can point towards a positive outlook for the coming years amid reported unrest amongst its leadership.
The company has seen its share value drop by around a quarter over the past year amid pressure from the closure of some of its robotic warehouses and testing consumer conditions.
On Thursday, the group will unveil its latest half-year results as it seeks to maintain recent growth.
However, the update comes against the backdrop of reported boardroom unrest between its two most senior executives.
Ocado chair Adam Warby, and the Tetra Pak billionaire Jorn Rausing – a shareholder and board member, reportedly tried to oust founder and chief executive Tim Steiner amid concerns over its share price.
However, there was backlash from a number of long-term investors in response, with a number threatening to seek Mr Warby’s removal if they ousted the chief executive.
On Monday, Ocado said that Mr Steiner will stay on at the helm until December next year, but confirmed succession plans after months of speculation.
The group said it would look to finalise the plans at the start of its 2027-28 financial year, which begins on December 1 2027.
Mr Steiner – one of the founders of Ocado in 2000 – will continue as chief executive until then.
After his successor is appointed, he will remain with Ocado as an adviser in a “founder role” – providing strategic advice to the board and management through 2029.
Shares in the company fell further after it confirmed the plan for his long-term departure.
Investors will therefore be keen for Mr Steiner and other members of the group’s leadership to outline their long-term plans for the company.
Ocado has a grocery retail business which it runs as a joint venture with Marks & Spencer, and an arm which runs robotic warehouses and technology platforms for supermarkets.
The company said in February that around 1,000 roles – about 5% of its global workforce – was going to be cut, mainly at its headquarters in Hertfordshire, as part of restructuring efforts.
It is also seeking to drive improvements in its technology arm, which recently revealed the proposed closure of warehouses run with grocery partners in North America, Kroger in the US and Sobeys in Canada.
Nevertheless, the group has also been moving forward with new partnerships, including a recently announced deal with Asda.
In its new update, the group is expected to report an increase in revenues, with analysts at JP Morgan pointing to 2.4% growth year-on-year for the six months to May.
Stronger orders from its Ocado Retail joint venture are expected to have boosted logistics revenues over the period.
The group is also likely to provide an update on its long standing target of reporting a positive cash flow in the second half of this financial year.
AJ Bell head of financial analysis Danni Hewson said: “The forthcoming results will give a snapshot of Ocado in the present day, but what matters more is how Ocado plans to become a stronger commercial entity longer term.
“Its growth plans have disappointed, so it needs bolder ideas.”
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