Ocado Group PLC Ocado announces deal with McKesson Canada (5971T)
November 15 2023 - 9:38AM
UK Regulatory
TIDMOCDO
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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END
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