British frozen food chain Iceland has reported record profits but admitted a flurry of discount vouchers from supermarket rivals is impacting sales.
Iceland's profits rose 18.5% to £184.3 million for the year ended March 30, and store-for-store sales were 6% despite a highly competitive marketplace.
Founder Malcolm Walker, who recently bought back the company in a £1.5 billiion deal, said underlying sales had been "pretty flat" since the year end as supermarkets stepped up their promotions by offering money-off vouchers to attract cash-strapped shoppers.
Iceland's profits rise represents its seventh set of record results in a row since Walker returned to the business he founded in 1970. In a swipe at his major rivals, he said it was achieved "not by chasing short-term profit targets, but by resolutely doing the right things for our staff and customers for the longer term."
The chain has grown its market share from to two percent, up from 1.9%. Iceland said the launch of 230 products under its own brand helped sales during the year, while it also opened another 21 stores -- 16 under the Iceland fascia and five under Cooltrader. It now has 814 stores across the UK and employs 24,000 staff.
