REG - Ocado Group PLC - Ocado announces deal with McKesson Canada

OcadoAnnouncement

15/11/2023 15:45

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RNS Number : 5971T  Ocado Group PLC  15 November 2023

 

15 November 2023

Ocado Group plc (the "Company" or "Ocado")

Announcement of deal for Ocado to provide fulfilment technology to

McKesson Canada

Ocado Group ("Ocado") has today announced a deal for Ocado Intelligent
Automation ("OIA") to provide automated fulfilment technology at a
distribution site for McKesson Canada. The deal will see Ocado sell its
proven, unique warehouse fulfilment technology in a sector outside of grocery
retail, and provide the AI-powered software applications necessary to operate
that technology long term. McKesson Canada is a leading diversified healthcare
provider in Canada and is the largest pharmaceutical distributor in the
country.

Tim Steiner, CEO of Ocado Group said:

"Today represents a new and exciting milestone as we bring the amazing
benefits of Ocado's technology to the healthcare distribution and logistics
sector. Our technology is ideally suited to supply chains that require dense
storage, highly accurate inventory management and secure stock control. lt has
been proven over 20 years in one of the most complex supply chain
environments, online grocery, and we're now bringing our experience and IP to
more sectors. We are very pleased to be expanding in Canada."

Expected Financial Impact

Ocado will receive upfront fees during the construction process with the final
payment upon final installation. Ocado will also receive an ongoing annual fee
related to the servicing and maintenance of the technology.

The impact of this transaction will be minimal on cash flow and earnings in
the current financial year. This is a capital light deal which will be cash
neutral throughout the development phase and will be cash and EBITDA positive
in FY25 when installation is complete and we recognise the income, costs and
profit.

Contacts

●    Tim Steiner, Chief Executive Officer, on +441707 228 000

●    Stephen Daintith, Chief Financial Officer, on +441707 228 000

●    David Shriver, Chief Reputation Officer, on +441707 228 000

●    Martin Robinson at Teneo, on +4420 7353 4200

Notes to Editors

About Ocado Group

Ocado Group is a UK based technology company trading on the London Stock
Exchange (Ticker OCDO). It provides end-to-end online grocery fulfilment
solutions to twelve of the world's largest grocery retailers and holds a 50%
share of Ocado Retail Ltd in the UK in a Joint Venture with Marks &
Spencer. Ocado has spent two decades innovating for logistics and ecommerce,
investing in a wide technology estate that includes robotics, AI & machine
learning, simulation, forecasting, and edge intelligence.

The person responsible for arranging the release of this announcement is:

Neill Abrams

Group General Counsel and Company Secretary

Ocado Group plc

Buildings One & Two Trident Place

Mosquito Way

Hatfield

Hertfordshire

AL10 9UL

Tel: +44 (0)1707 228 000

Email: company.secretary@ocado.com

 

 

 

 

 

 

 

 

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