Frozen food retailer Iceland reported a loss of £4.7m in the year ending 28 March 2025 compared to a profit of £11m in FY24.

Additionally, the firm’s adjusted EBITDA decreased to around £142.1m compared to £150.9m in 2024. However, Iceland maintained its market share, monitored by Kantar, at 2.2%.

Iceland’s annual turnover remained largely flat year-over-year with a 0.2% increase to £4.1bn.

Sales at the company grew by 2.8%, driven by its investment in expanding its £1 product range.

The retailer claimed the increases to National Insurance contributions and the National living wage affected its overall results.

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“Work is in hand to fully offset the substantial cost increases we incurred at the beginning of the new financial year as a result of the rise in employers’ National Insurance contributions and the National Living Wage, with the aim of maintaining EBITDA as a whole,” said a statement from the business.

“However, this cost recovery will be progressive, and the timing of the increases means that we do not anticipate some dilution of EBITDA in Q1. We have plans to recover this shortfall before the end of FY26.”

Moving forward, the retailer anticipates that the potential Budget increases will lead to a 4% to 5% increase in food inflation in the upcoming months.