Iceland saw it profits increase 0.6% to £317.6m in the financial year ending in March, down from 24% in the year prior.

The frozen food retailer’s revenue remained flat year-over-year at £4.2bn, despite sales rising by 3%, according to a report by The Telegraph.

Iceland currently holds a market share of 2.2%, according to the latest Worldpanel (formerly Kantar) data.

Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning

Earlier this year, Iceland’s chief executive, Richard Walker, criticised the Labour government for higher National Insurance fees and slow planning reforms, which “add to the cost of business”.

Fitch Ratings, a credit rating agency said Iceland would have to increase its cost-cutting initiatives to maintain profitability in the upcoming year.

“The company, along with other UK-based retailers, will be hit by the rise in National Insurance and minimum living wage contributions from [this year], which we estimate will result in an additional cost of £50m,” reported The Telegraph.