Iceland has seen a “better than expected” performance guidance, improving the chances for a £750m refinancing.
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.
The frozen food retailer’s latest improved guidance was recorded by ratings agency Moody’s, who expects Iceland’s EBITDA to grow to around £115m by the end of the financial year in March.
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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 saw its EBITDA fall 35% to £57m during the nine-month period, compared to the same time the previous year.
While it 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.
In recent news, Iceland had its cover pulled from a leading credit insurer as the jump in energy costs piles pressure on the frozen-food retailer. A spokesperson said it remains “incredibly well positioned” despite its suppliers being temporarily cut from accessing credit insurance cover.
The retailer has also pledged £50,000 to The Sun‘s Earthquake Appeal to support the essential relief efforts of the British Red Cross after the an earthquake hit areas in Turkey and Syria.
