// Iceland improves prospect for a £750m refinancing following “better than expected” performance guidance
// Ratings agency Moody’s expects Iceland’s EBITDA to grow to around £115m by the end of the financial year in March
Iceland has recorded a “better than expected” performance guidance, improving the prospect for a £750m refinancing.
The retailer‘s latest improved guidance was recorded by ratings agency Moody’s.
Iceland posted revenues just short of £3bn in the nine months to December 2022, a 5.6% increase on the same period the previous year.
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The growth helped Iceland boost its share of the frozen grocery market to 19%, leaving it only two percentage points behind Tesco, Moody’s said.
However, rising energy costs following the Ukraine war saw EBITDA fall 35% to £57m during the nine-month period, compared to the same time the previous year.
Despite this, Moody’s expects Iceland’s EBITDA to grow to around £115m by the end of the financial year in March.
While it is remains short of full year 2022’s £140m EBITDA, it is “a significant improvement compared to the first nine months of fiscal 2023,” Moody’s said.
The more positive outlook improved the prospect for a refinancing and reduces the negative pressure on the company’s credit rating.
