Iceland Foods has delivered a 'year of good progress' for the 52 weeks ended 29 March 2013, with sales up 1.0% to £2.64 billion. Adjusted EBITDA was up 0.6% to £226.3 million. On a 52 week comparable basis, EBITDA increased by £1.4 million year-on-year.
In June 2012, Iceland Foods acquired Loxton Foods Ltd, which supplies ready meals to the Group.
The business was renamed Iceland Manufacturing Limited in April 2013. According to Malcolm Walker, Iceland chairman and chief executive, "This strategic acquisition of a key supplier was designed to strengthen our competitive edge further by enabling us to accelerate the rate of product innovation and to secure the benefits of vertical integration."
On 29 September 2012 Iceland Foods completed the disposal of 54 Cooltrader stores to Heron Foods Limited. A further three Cooltrader stores were retained and converted to the Iceland fascia. According to Walker, "The business, though profitable, offered limited opportunities for future growth and we felt that it was right to focus all our efforts on the growth and development of the Iceland brand."
The Group opened 36 new Iceland stores during the period and closed three, making for a total of 790 Iceland stores at year-end. A further 40 new Iceland Stores are planned for the rest of 2013, with the online offering set to expand also. “We will offer our customers the ability to shop with us online, building on the successful initial trials of the service in selected stores that began last month," Walker commented.
In terms of innovations, Iceland Foods launched some 400 new frozen products under the Iceland brand during the year, with their 'Roast from Frozen' joints and 'Perfectly Cooked' range proving particularly successful for the retailer. Iceland also extended their partnership with Greggs, with the range now offering 19 bake-at-home sweet and savory products.
Regarding the horse meat crisis, which involved Iceland from January 201 when traces of the meat were found in the retailer's burgers by Ireland's FSAI, Walker said, "We responded swiftly and effectively to the issue of horse meat contamination of beef products that emerged in January 2013 and were able to report on 15 February 2013 that all Iceland own brand products containing beef then on sale in the UK had been checked by an independent laboratory and found to be clear of equine contamination."
He continued, "A rigorous, ongoing testing programme ensures that all our own brand products meet our specification and the high standards that our customers are entitled to expect."
Commenting on the results, he said, "During a very busy year for the Group we have not only delivered strong results but also strengthened our focus through the sale of the Cooltrader business, taken an important step towards vertical integration with the acquisition of our own ready meal manufacturing facility, and laid the foundations for further growth of the Iceland brand internationally." (7 June)
