Iceland posts record profits as £1 range sales soar

The frozen food retailer told bondholders last week that in the year to 29 March, underlying profits jumped 24% to £315.7m, while sales edged up 6.6% to £4.2bn.

Over the past year, the grocer has been expanding its £1 value range to more than 700 products, having added 50 new own-brand and branded items earlier this year.

In the first half of January when the range was initially extended, sales of this line rocketed 61%.

Over the past few years, the retailer, which is heavily reliant on freezers, has struggled with high electricity bills, having faced a annual rise of £94m in its annual energy bill in 2022/23.

However, Iceland has reduced its electricity consumption by 10% over the last year, at the same time prices have largely returned to normal.

The frozen food chain told investors that in the year ahead it expects to grow profits again, however it did not issue an exact target.

Grocery Gazette