Ocado delivers its profit breakthrough

ONLINE supermarket Ocado will show an operating profit for the first time next week as the cash it makes from its grocery sales overtakes the costs of operating its high-tech delivery warehouse.

The five-year-old firm will achieve the milestone after becoming the second-biggest internet grocer behind Tesco, with annual sales of £150m. It also knocks Sainsbury into third spot.

Ocado handles shopping orders for Waitrose and last month its figures, added to Waitrose's smaller delivery service, overtook Sainsbury. But now Ocado claims to have beaten Sainsbury in its own right.

While Ocado is still making an overall loss from its warehouse at Hatfield, Hertfordshire, finance director Jason Gissing said the operating profit was a major achievement.

He added: 'Now that the warehouse is making money, we can roll out others across the UK.'