Iceland posts record profits as £1 range proves popular
The retailer reportedly told investors that it expects profits to grow again in the year ahead, although it did not provide a specific target
Iceland has reportedly posted record profits for the full-year as it managed to control its energy bills and its revamped £1 value range proved popular among squeezed customers.
Its underlying profits rose 24% to £315.7m in the year ended 29 March, and its sales nudged up 6.6% to £4.2bn, the company told bondholders according to The Sunday Times.
However, the company did have an extra week in its reporting period compared with last year.
Iceland was especially affected by the energy price increases caused by Russia’s invasion of Ukraine as it relies heavily on freezers.
The company posted a loss for 2022/23 year partly due to a “wholly unprecedented” £94m rise in its annual energy bill.
Over the last year, electricity prices normalised and it also managed to reduce its consumption by 10%.
At the start of the calendar year the frozen food retailer added 50 new own-brand and branded products to its £1 range, which now has more than 700 items.
As a result sales of its value line soared 61% in the first half of January, the first weeks after the changes.
The retailer reportedly told investors that it expects profits to grow again in the year ahead, although it did not provide a specific target.
