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Iceland has reported a “better than expected” guidance, and as a result, the retailer believes its prospects for a £750m refinancing have improved.
The retailer’s latest improved guidance, which was recorded by ratings agency Moody’s, shows that EBITDA is expected to grow by around £115m by the end of the financial year in March.
This comes after Iceland’s revenues were at almost £3bn in the nine months to December 2022, which means an increase of 5.6% on the same period the previous year.
According to Moody’s, this growth contributed to the retailer’s boost in market to 19%. As it stands, Iceland is now only 2% points behind Tesco.
Despite rising energy costs causing EBITDA to fall 35% to £57m during the nine month period compared to the same period last year, the more positive outlook improved the retailer’s prospect for a refinancing deal to reduce the negative pressure on its credit rating.
A spokesperson from Moody’s said: “While it remains short of full year 2022’s £140m EBITDA, it is a significant improvement compared to the first nine months of fiscal 2023.”
