Expansion Costs Cut Into Iceland's Earnings In 2018
Expansions costs for the Irish arm of Iceland led to pre-tax losses of almost €2.5 million last year.
As reported by the Irish Examiner, the UK-based frozen food retailer’s expenses offset an impressive jump in turnover.
At A Cost
In the 12 month period ending 31 March, Iceland Stores Ireland Ltd reported losses of €2.48 million, despite a 17% increase in turnover to €57.7 million.
The retailer opened five stores in Ireland last year, following from nine new openings in 2017.
The company’s operating lease costs increased from €1.8 million to €2.3 million.
With a total of 26 stores in the country, Iceland said it will continue to look to expand.
As a result of its current rate of expansion, the number of people employed by the chain has increased by 77, to 446 people.
As a result, staff costs increased from €6.4 million to €7.4 million.
© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click sign-up to subscribe to Checkout.