Online grocer Ocado said it is “encouraged by the progress of the business so far this year” as it revealed that EBITDA is expected to grow 12% in its first half.

However, it warned that sales growth in its second quarter would be lower than the first, blaming “capacity constraints and the higher incidence of holidays”. 

Ocado expects sales growth of 21% for the first half – the 24 weeks ending May 15.

The grocer is to build a separate 100,000 sq ft warehouse facility for its non-food business, close to its original customer fulfilment centre (CFC) in Hatfield. Ocado did not reveal the exact location but said it secured the site on “attractive terms”.

The retailer is also constructing another CFC at Dordon, in Warwickshire, which is expected to open at the end of next year.

At Ocado’s AGM today, the retailer said: “Ocado continues to see strong demand and growth across all areas of the business. 

“As previously stated the Hatfield CFC remains capacity constrained in the near term. Investment is continuing at the Hatfield CFC to increase weekly order capacity and to expand the range of products offered to customers. 

“The construction of the second CFC at Dordon, in Warwickshire, commenced as planned before Easter 2011 and is expected to be completed by the end of 2012.”

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