Iceland reports on ‘challenging’ year

Iceland joined its rivals in warning over the impact of food deflation and price cuts as it revealed annual earnings slumped by more than a quarter after sliding sales.
Iceland joined its rivals in warning over the impact of food deflation and price cuts as it revealed annual earnings slumped by more than a quarter after sliding sales.
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Iceland Foods has continued its ‘long tradition of successful re-invention’ during a challenging year, it revealed today.

Iceland Foods has announced the results of its holding company Iceland Topco Limited for the 52 weeks ended 27 March 27 2015. Iceland joined its rivals in warning over the impact of food deflation and price cuts as it revealed annual earnings slumped.

It achieved sales of £2.697bn. compared with £2.711bn the previous year. The adjusted EBITDA was £150.2m, which compares with the £202.2m it recorded the year before.

The company successfully completed a refinancing in July 2014, and 28 net new stores opened in the UK and Republic of Ireland over the period. An online shopping service was also rolled out nationwide in the UK.

Malcolm Walker, Iceland’s chairman and chief executive, said: “This has been an exceptionally challenging year for the group, and for the UK food retailing industry as a whole.

“In the face of food price deflation, intense competition and significant change in consumers’ shopping habits, Iceland has continued its long tradition of successful re-invention.

“We have done this by developing a new store format, launching new product ranges, upgrading packaging, rethinking marketing and initiating a major productivity programme. The benefits began to become evident in a more encouraging underlying sales and profit performance towards the end of the year, which has put us in a stronger position to face the continuing competitive challenges in the year ahead.”

The company added: “We remain confident that Iceland will remain a highly cash generative business with the capability to deliver long term profitable growth based on the unique proposition it has developed over the last 45 years.”

Carl DAmmassa, Group Managing Director  Business Finance, Aldermore

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