Iceland is on the path to profit surge

Iceland, a frozen food chain, has predicted that it will make the highest profit in a decade in this year. This admission will increase scrutiny on whether supermarkets profiteer in a crisis of cost-of-living.

Iceland’s financial results, shared last week with bondholders, revealed that it is confident this year’s profit will be the highest in the past 10 years. It will surpass the £176million made in 2021 when sales were boosted due to the closure of restaurants and cafes during lockdowns.

Richard Walker, the executive chairman of, a supermarket, stated last year that “all business owners should be ready to accept some financial pain” due to the current cost of living.

Iceland attributed its expected profit increase to a drop in energy costs that hit the company particularly hard last fiscal year. It also cited strong sales growth, and cost-cutting initiatives.

The biggest grocery price increase in 45 years is causing supermarkets to be scrutinized. The food price inflation reached 18.3 percent in May. This is a slight decrease from the 19.1 percent peak in March.

Iceland has frozen hundreds of products’ prices at £1 to help customers cope with the rising cost of groceries. Iceland also offers a 10% discount to those over 60 on Tuesdays and interest-free loans between £25 and £100.

“We do everything we can to assist our customers, particularly in times of economic uncertainty.” Iceland’s spokeswoman said that they constantly monitor all their prices to make sure we are offering our customers a better deal than major supermarkets for our entire product range. We also offer significantly lower prices on frozen foods.

Richard Walker, the executive chairman of Iceland, attributed its expected profit increase to a decrease in energy costs

Two weeks ago, MPs in the Business and Trade Committee grilled executives from Tesco, Sainsbury’s, Asda, and Morrisons about their soaring food and fuel prices. Labour MP Darren Jones called Asda co-owner Mohsin Issa before the business and trade committee to clarify the evidence given by Kris Comerford. The supermarket’s chiefcommercial officer.

Comerford’s assertion that Asda had not changed its fuel pricing strategy appeared to contradict findings made by the Competition & Markets Authority. The regulator found Asda significantly increased its fuel profit margin targets since it was acquired by the Issa brother, Mohsin, Zuber and private equity company TDR Capital in 2020.

Iceland’s financial results up to March showed the impact of the steep rise in electricity prices following Russia’s invasion. Sales rose 6.9% to £3.96billion last year but profits sank £20.7m to £120.2m due to an increase of £95.7m in energy costs. Iceland relies heavily on freezers to keep its 997 shops cool.

Richard Walker, his outspoken dad Sir Malcolm who built Iceland into a national chain of stores, took over as executive chairman from him in January. Walker Jr., a panelist on BBC’s Question, has his sights set on a political career and was named last year on the Conservatives approved candidate list.

The Walker family was scrutinized during the pandemic because they chose not to repay the Treasury’s relief on business rates, claiming that Iceland couldn’t afford it.

The Walkers will take full ownership of Iceland by summer 2020 in a £108.5million deal.