The group that own Iceland say promotions helped improve sales at its struggling supermarket chains.
Chief executive of Big Food Bill Grimsey said there had been a "significant change" in Iceland's performance over the last three months.
Like-for-like sales were down 3.6% on a year ago in the 13 weeks to December 27, compared with a 7.7% drop in the previous quarter.
And over a five week period covering Christmas and New Year, like-for-like sales at the frozen food chain were down just 2.1%.