Iceland marks record profits by taking swipe at its rivals

By PERRY GOURLEY
Published on 23/06/2012 00:00

FROZEN food retailer Iceland yesterday reported record profits but said a flood of money-off voucher promotions by supermarket rivals was affecting current trade.

The group saw pre-tax profits jump 18.5 per cent to £184.3 million in the year to 30 March after like-for-like sales rose 6 per cent in a “highly-competitive” marketplace.

Founder Malcolm Walker, who recently bought back the company from a pair of collapsed Icelandic banks in a £1.5 billion deal, said underlying sales had been “pretty flat” since the year end.

He warned supermarkets had been stepping up their promotions by offering money-off vouchers to attract cash-strapped shoppers in recent months. But in a swipe at his rivals, he said Iceland’s success had been achieved “not by chasing short-term profit targets, but by resolutely doing the right things for our staff and customers for the longer term”.

Iceland said the launch of 230 products under its own brand helped sales during the year.