Pre-tax losses increase almost threefold at Iceland Ireland
Further expansion in Ireland paused as revenues dropped by 21.6% to €51.79 million during the financial year ending on 25 March 2022
21 December 2022
The Irish arm of frozen food retailer Iceland has recorded an almost threefold increase in pretax losses to €9.04 million.
Losses increased by 177% at Iceland Stores Ireland Ltd, according to new accounts published earlier this month, which show that revenues dropped by €14.29 million (21.6%), from €66.08 million to €51.79 million in the 12 months to the end of 25 March this year.
The Irish Times reports the €9.04 million pretax loss for this year follows a pretax loss of €3.25 million last year.
“The Covid-19 pandemic changed consumer lifestyles and purchasing behaviour, creating challenges for both the company and the retail sector as a whole,” the directors said in a note with the accounts.
Subsequently, at present, the business has paused further expansion in Ireland, with the directors stating that they “are looking to embed the changes required post-Brexit over the next 12 months before looking to expand the business further”.
According to the note, a decline in sales led to a €4.25 million decrease in adjusted ebitda to €5.48 million. The business also incurred some Covid-related costs throughout the period. This year, these exceptional costs amounted to €264,000, which followed an exceptional cost of €455,000 in the previous year.
Post-tax, the firm’s losses amounted to €8.15 million this year, after recording a corporation tax gain of €888,000. The Irish Times adds that this year’s losses take account of lease payments of €2.69 million and non-cash depreciation costs of €3.15 million.
Currently, Iceland operates from 27 sites in the Republic of Ireland. The total number of staff employed this year rose from 438 to 449, comprised of 24 people in the head office and 425 in sales. However, staff costs decreased this year from €7.84 million to €7.14 million. Emoluments to directors reduced from €283,000 to €116,000.
A shareholders’ deficit totalled €19.5 million