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Ocado reports fast and profitable sales growth

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Online supermarket Ocado says its business is growing fast and profitably.

The company said, in a statement ahead of its annual general meeting today, that it expects sales in the first half of its financial year to grow by 21%. It said the company remained profitable, with EBITDA (earnings before interest, tax, depreciation and amortisation) conversion on incremental sales growing at 12% during the period, the 24 weeks to May 15.

“Ocado continues to see strong demand and growth across all areas of the business,” Ocado said in the statement.

The company said work was now underway on its second customer fulfillment centre at Dordon in Warwickshire, that is expected to be finished by the end of 2012, supplementing existing capacity at its Hatfield centre.

The company has also now leased a 100,000 sq ft warehouse from which it will develop its non-food business.

The statement said: “The board is encouraged by the progress of the business so far this year. Sales growth in the second quarter has as expected been lower than the first quarter as a result of capacity constraints and the higher incidence of holidays.”

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