Ocado, the online supermarket has announced an increase in yearly profits with a 2.1% rise in pre-tax revenue.
Tim Steiner, the chief executive for Ocado said: “Trading has been excellent despite the current economic climate.”
As a result of the ongoing price wars between the supermarkets, they did experience a decline in order size by 2.7%.
Competitors such as Lidl and Aldi have left a sour taste in the mouths of industry veterans such as Sainsbury’s, Tesco, Asda and Morrisons.
However, investors are pleased with Ocado’s latest results, pushing their share prices up by over 7% to 262p during the morning trading.
Annual revenues also made a large increase, and their customer base has also expanded by more than 14%. They now have 580,000 customers.
Ocado is currently liasing with several international companies to engage in a partnership through their Smart Platform.
Analysts suspect that the partnerships are with retailers in America and Europe and that they will be a major catalyst in driving forward Ocado’s share prices.
Equity analyst at Hargreaves Lansdown George Salmon has stated: “The company has been in talks with potential partners for some time; however, nothing has materialised as of yet.”
“Appointing former Sainsbury’s executive Luke Jensen as the head of the Ocado Smart Platform was a good move; hopefully he will be able to push through a definite deal.”
Mr Salmon also warned that competition is going to increase especially since Amazon made the decision to join the market.
In 2016, Morrisons partnered with Amazon to provide their customers with groceries. Amazons presence in the market has escalated the scale of the competition.
Morrison is also in partnership with Ocado, in August 2016, they expanded their home delivery service through Ocado.
The online shop claims that it has greatly increased their capabilities by partnering with Morrisons.