Iceland - comment

Iceland released their FY23/24 (to March 24) audited numbers this morning, with EBITDA at £171m in line with guidance given at the time of the refinancing.  Iceland has successfully grown their Gross Profit margin, up 160 bps over the prior year, and coupled with strong sales momentum this resulted in improved EBITDA.  FY24/25 will see Iceland return to store expansion after the pause of the last 18 months due to energy price rises.  Iceland expects to open 15-20 stores in FY24/25, with 20-25 in subsequent years.  The store expansion coincides with the new Warrington depot which remains on track for deliveries from early 2025.  Overall, guidance remains strong, with Iceland targeting further improvement in EBITDA and reduction in Gross debt. Leverage, under FRS 102, is 3.8x and with no meaningful upcoming maturities, the bonds should be well supported.  

We will update our model after the conference call this morning.