Iceland freezes expansion due to Brexit impact – The Irish Times

Frozen food shop Iceland has paused further expansion in the Republic as the business embeds changes brought about by Brexit, according to its latest financial report.

The UK retailer operates 27 shops here. New accounts show that the businessbenefited from a return to home cooking duringthe Covid-19lockdownsas revenues increased by 9 per cent to 66 million.

According to the accounts, filed by Iceland Stores Ireland Ltd for the 12 months to the end of March 26th this year, thecompany reduced itspretax losses by 27 per cent from 4.47 million to 3.25 million.

Under the heading of future developments,thereport said the company was looking to embed the changes required post-Brexitover thecoming year before expanding the business further.

The accounts note that the year was a challenging one for thecompany, with meetingthe challenges oftheCovid-19 pandemicandseizing the opportunities created by the changes in consumerlifestyle and purchasing behaviour. Growth in the grocery market was driven byheightenedconsumer demand for home cooking rather than food to go or eating out. Thisstructuralshift reflected the increase in home cooking and reduced commuting,together with the loss of out of home eatingopportunities for much of theyear due to the series ofCovid-19 nationallockdownsand tiered restrictions, the accounts said.

Underscoring the positive impact on sales brought about by theCovid-19 pandemic, the report said that Icelands supply chaindealtsuccessfully with the challenge posed byCovid-19during a surge in demandunprecedented outside the well-planned Christmas peak.

Theaccounts also said that it incurredsubstantialCovid-related costs and the businesss exceptional cost of sales last year totalled 455,000.

The companysadjusted earningsbefore interest, tax,depreciation andamortisation(ebitda) last year totalled 922,000 compared to a deficit of 1.2 million inthe prior year , a positive swing of 2.1 million. Numbers employed remained at 438 as staff costs increased from 7.63 million to 7.84 million. Non-cash depreciation costs totalled 3.72 million.

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Iceland freezes expansion due to Brexit impact - The Irish Times