UK frozen food retailer Iceland Foods has reported a 14% increase in full-year profits as it reported a solid increase in sales despite fierce competition.
Iceland booked net profit before tax of GBP147.5m (US$229.8m) for the 53 weeks to 30 March. Sales climbed 9.4% to GBP2.61bn on the back of a 6% increase in like-for-like sales.
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Chairman and chief executive Malcolm Walker praised Iceland’s like-for-like sales and said the result had been achieved “in a highly competitive market place, increasingly dominated by short-term promotional activity by the major multiples”.
He added: “We achieved this by consistently offering our customers great everyday value in frozen foods and for their daily purchases of grocery and chilled foods, underlined by our round sum pricing policy.”
Iceland has benefited from the economic downturn in the UK, which has led consumers to turn to frozen food to waste less.
The retailer’s low prices have also attracted consumers and it is notable that other retailers, including Asda, are now offering more lines at price-points like GBP1.
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By GlobalDataHowever, Walker, who oversaw a takeover of Iceland Foods earlier this year, can take credit for another solid performance for a retailer that he has revived since he returned to the business in 2005.
