Frozen food retailer Iceland has reported profit growth following a successful revamp of its stores and product offerings.
In the year to March, full year profits rose 6.3 per cent to £160 million, alongside a sales boost of 4.4 per cent to £2.8 billion while like-for-like jumped two per cent.
Amid intensifying competition to drive down prices and ever-increasing import costs, Iceland is now one of the fastest growing grocers in the UK.
Moving away from its focus on budget food, the retailer invested £2 million on a development kitchen which sought to create more luxury ranges.
It also expanded its Food Warehouse outlets which offer a cash and carry format, opening 24 throughout the year.
A further four traditional stores brings the retailer’s UK estate to 884 outlets.
“The set of strategic initiatives we began in 2015, with the aim of differentiating Iceland, changing consumer perceptions and so restoring growth to our business, bore fruit in the year under review,” founder and executive chairman Malcolm Walker said.
“Like-for-like sales performance improved throughout the year to make us one of the UK’s fastest-growing food retailers by the year-end. We increased the pace and enhanced the quality of our new product development.”
Despite these positive figures the retailer warned of looming uncertainty due to Brexit.
“We continue to work with our suppliers to mitigate these pressures as far as we can, so as to minimise the impact on consumers, but the economic environment will clearly remain uncertain until we achieve clarity on the timing and nature of Brexit,” it said.