Ocado Group plc (OCDDY) shares briefly led European gainers Wednesday after the online grocer's CEO said it had seen a pick up in interest since Amazon's blockbuster takeover of high-end food retailer Whole Foods.
Ocado shares were marked 1.45% higher in early London trading and changing hands at 292.3 pence each, extending their three month gain past 20% compared with a 3.82% decline for the FTSE 350 Food & Drugs Retailer Index.
Ocado has seen a pick-up in interest from U.S. players since Amazon.com Inc (AMZN) - Get Free Report announced its $13.7 billion deal to buy Whole Foods Market (WFM) , CEO Tim Steiner said on an earnings call Wednesday morning, adding that the deal has been a positive for Ocado.
Ocado in June announced its first international partnership with a European retailer using the Ocado Smart Platform and is hoping to cut deals with other companies, saying it was continuing conversations with multiple retailers to adopt the solutions.
Ocado reported a sales increase of 22.2% for the 26 weeks ending May 28 to £713.8 million ($921 million), however pre-tax profit fell 9.4% to £7.7 million compared with the 24 weeks ended May 15, 2016 with a 26 week comparison profit fell by 18.1%.
"After several years of price deflation in the U.K., we have seen this begin to ease in the period and, when combined with our increasing scale and operational efficiencies, this trend will support the continued profitable growth of our retail business," Steiner said in a statement.
Ocado also said that it was testing a new store-pick up solution with supermarket Wm Morrisons (MRWSY) , and has helped to continue to "enable growth of Morrisons online grocery business."
Morrisons also has a partnership with Amazon in the U.K. allowing Prime customers to get a full order in certain parts of England within an hour.
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