Iceland posted a record profit last year after its energy bills fell and squeezed customers lapped up its £1 value range.
Underlying profits surged by 24% to £315.7m in the year to March 29, as sales nudged up 6.6% to £4.2bn, it told bondholders last week.
However, the frozen food chain did have an additional week versus last year in the reporting period, The Sunday Times said.
Iceland, which relies heavily on freezers, was blighted by surging electricity prices last year in the wake of Russia’s invasion of Ukraine. It plunged to a loss in its 2022/23 year, as it faced 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%.
The retailer has also been ramping up its £1 value range. At the turn of the year it added 50 new own-brand and branded products to the range, which now has more than 700 items.
The range has appealed to cash-strapped customers, and in the first half of January – the first weeks after the range extension – sales of its value line soared 61%.
The retailer told investors that it expects profits to grow again in the year ahead, although it did not provide a specific target
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