British technology and online grocery firm Ocado announced it is in active discussions with several potential retail partners in the United States, as the company works to recover from recent high-profile losses in the North American market.
The London-listed company, which develops automated technology for warehouse distribution centers and operates its own online grocery service in the UK through a joint venture with Marks & Spencer, released its half-year financial results on Thursday. Those results were bolstered by one-time payments received from contract termination fees.
The company has faced significant headwinds after two of its major partners — Kroger in the United States and Sobeys in Canada — announced they would be shutting down robotic customer fulfillment centers, citing demand that came in below expectations.
The fallout from those closures has sent Ocado’s stock price tumbling 36% over the past six months. In response, the company is now aggressively pursuing new U.S. partnerships, stating it is currently holding what it describes as “multiple live engagements” with “significantly evolved solutions.”
When the one-time Kroger and Sobeys termination payments are excluded, Ocado’s adjusted half-year earnings dropped 12% to £81 million, which is equivalent to approximately $109.63 million. Despite that decline, the company maintained its forecast that cash flow would turn positive during the current six-month period, with full-year positive cash flow expected next year.
