Frozen food specialist Iceland is on course to post its highest profits in more than 10 years as scrutiny on the supermarkets intensifies amid the cost-of-living crisis.
The supermarket told bondholders last week that it was confident that this year’s underlying profit will exceed the £176m it made in 2021 due to energy cost savings, sales growth and cost-cutting measures, The Times reported.
Iceland has helped customers by freezing hundreds of product prices to £1, as well as giving over-60 customers a 10% discount on Tuesdays.
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However, Iceland’s soaring profits is likely to stoke the fires as the government probes whether supermarkets have been profiteering from rocketing food inflation.
Late last month, bosses from Tesco, Sainsbury’s, Asda and Morrisons were grilled by MPs on rising food prices and whether they were doing enough to protect customers amid the cost-of-living crisis.
An Iceland spokesperson told the newspaper: “We strive to do all we can to help our customers, especially when there is economic uncertainty.
“We constantly check all our prices to ensure that we offer our customers better value than the major supermarkets across our whole product range — and we are significantly cheaper for frozen food.”
Just last week, the CMA found supermarkets made an extra 6p per litre on fuel as the big 4 grocers had increased their margin.
