Walker toasts seventh year of growth for Iceland

ICELAND, the frozen food specialist, has posted record results months after founder Malcolm Walker sealed a £1.55bn buyout of the business.

The group now plans to explore international growth opportunities, as well as opening more stores on these shores.

Underlying earnings (ebitda) at the Flintshire-based group soared 22.5% to £230.2m  as sales rose 9.4% to £2.6bn (6% like-for-like). Bottom line profits before exceptionals rose 18.5% to £184.3m.

In the 53 weeks to the end of March, Iceland opened 18 new stores creating 1,000 jobs. It now has 814 outlets, the majority, 757, trade under the core Iceland name and 57 under the Cooltrader fascia. 

Mr Walker, chairman and chief executive said: “It is fantastic to be able to report the seventh consecutive set of record results since I returned to the business in 2005. 

“I am particularly pleased that we have achieved this exceptional performance not by chasing short-term profit targets, but by resolutely doing the right things for our staff and customers for the longer term.”

He said the strong like-for-like growth had been achieved in an ultra-competitive market place dominated by short-term promotions by other major grocers.

Looking ahead he pledged there would be no change in strategy: “The key benchmarks for Iceland will not be short term performance but satisfying our customers by continuing to offer great value, maintaining the quality of our products, keeping up the pace of innovation and providing great service by well rewarded and highly motivated colleagues. 

“We will also make our products available to more customers through continued expansion of our store network in the UK and by exploring opportunities for further development of our offer overseas, with the support of our new investors.”