Farmfoods thrives as recession lifts frozen
The recession is proving positive for frozen discounter Farmfoods, which this week posted a massive rise in pre-tax profits.
The freezer chain increased its pre-tax profits by 84% to £9.2m in the year ending December 2008, and sales were up 15% to £439m, according to accounts filed at Companies House.
The company has benefited from increased frozen food sales as consumers turn to products they see as offering good value and generating little waste.
Last year, it launched a programme to refresh its look by rebranding some of its 300 stores, replacing the old blue fascia with a verdant farm scene set against a black backdrop. Its intention was to reposition itself as a value family supermarket rather than discounter.
Capex rose 55% in the year to £19.2m, partly as a result of the rebranding, which has now been extended to most of the company’s stores.