Frosta increases turnover - Profit falls - Frosta's Bold Bet on Quality Pays Off Despite Profit Dip in 2025
Frosta, the Bremerhaven-based frozen food manufacturer, saw its profits dip in 2025 despite strong sales growth. The company's net profit fell from €42 million to €37 million, largely due to rising ingredient costs and higher expenses. Yet, its revenue climbed by nearly 7%, hitting €682 million as demand for its products surged.
Frosta has maintained its focus on quality, even as material costs rose. Unlike many competitors, the company avoids cost-cutting measures, such as using cheaper ingredients. For example, it sources whole wheels of Pecorino cheese—four times more expensive than industrial processed alternatives—for its meals.
This commitment to quality has paid off in market dominance. Nine of Germany's ten best-selling frozen meals now carry the Frosta brand. Over the past five years, the company has steadily grown its market share to around 15–18%, according to Nielsen data and industry reports. While Iglo remains the leader with 25–28%, Frosta's growth outpaced the broader frozen food sector in 2025.
Looking ahead, Frosta expects further expansion. The company forecasts revenue growth of 4% to 9% in 2026, with a net profit margin of 4% to 8%. Its strategy of prioritising premium ingredients, despite higher costs, continues to drive consumer loyalty and sales.
Frosta's 2025 results show a clear trade-off: lower profits but stronger revenue and market share. The brand's refusal to compromise on quality has cemented its position among Germany's top frozen food producers. With ambitious growth targets for 2026, the company remains confident in its long-term approach.
