Retailer’s Revenues Up by £3bn, Narrowing the Gap with Tesco

  • Iceland’s improved guidance boosts refinancing prospects
  • Revenues increased by 5.6% in the nine months to December 2022 compared to the previous year
  • EBITDA expected to grow by £115m by March end
  • Iceland’s market share up by 19%, now only 2% behind Tesco
  • EBITDA fell 35% due to rising energy costs, but still a significant improvement

Iceland has reported better-than-expected guidance, improving its prospects for a £750m refinancing deal. Moody’s ratings agency noted that EBITDA is expected to grow by around £115m by the end of the financial year in March. Revenues increased by 5.6% to nearly £3bn in the nine months to December 2022 compared to the previous year, pushing Iceland’s market share up by 19%. Despite a 35% drop in EBITDA due to rising energy costs (£57m vs. the same period last year), the positive outlook eases pressure on its credit rating. A Moody’s spokesperson said it’s a significant improvement compared to the first nine months of fiscal 2023.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Iceland’s financial performance, including growth in revenues and EBITDA, and its improved prospects for refinancing. It also includes a quote from Moody’s, which adds credibility to the report. However, it could be more concise by removing some redundant details and focusing on the main points.
Noise Level: 3
Noise Justification: The article provides relevant information about Iceland’s financial performance and its improved guidance, but it could benefit from more in-depth analysis or context on how this impacts the industry and consumers.
Financial Relevance: Yes
Financial Markets Impacted: Iceland’s refinancing deal and its comparison with Tesco in the retail market
Financial Rating Justification: The article discusses Iceland’s improved financial performance, impacting its refinancing prospects and position in the retail market compared to Tesco, making it relevant to financial topics and markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk