Ocado upgrades technology arm, sending shares soaring

Ocado, the British online grocer, has raised its annual guidance, citing better profitability in its warehouse technology business. The company’s shares surged by 18% in response to the news. Ocado operates a joint venture with Marks & Spencer in the UK and sells its advanced warehouse technology to retailers globally. Despite a 55% slump in share prices this year, Ocado’s CEO, Tim Steiner, assures investors that the company has a clear plan and is executing it. The company expects its key technology solutions division to achieve a ‘mid-teens’ EBITDA margin in the 2023-24 fiscal year, along with improved cash flow.