Business Irish

Thursday 18 September 2014

IKEA still sitting pretty as Dublin store has 'stable' 2012

Published 24/01/2013 | 05:00

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Swedish furniture retail giant Ikea's Dublin store has delivered a "stable" financial result for 2012, despite a difficult economic backdrop, according to the outlet's manager.

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Paul Reid said that 2012 had been "tough" for the Irish economy but that customer-focused initiatives had contributed to a "stable like-for-like result" in its fiscal 2012 year.

The latest set of accounts for the Ikea operation in Dublin, for the 12 months to the end of August 2011, showed that profits that year fell 40pc to €6.8m while revenue declined just over 7pc to €102.8m.

Ikea opened its doors here in 2009 and made an €11.4m profit in its first financial year operating here.

The performance at the Dublin outlet came as the Ikea group, which is a private company and is under no obligation to produce publicly available accounts, said that total sales grew 9.5pc, and by 4.6pc when adjusted for currency fluctuations in its 2012 fiscal year. It didn't specify the actual sales figure.

Grow

But it said that net profits rose 8pc in the period to €3.2bn, helped in part by higher revenue and a "continued cost focus".

Ikea president and chief executive Mikael Ohlsson said that Ikea had managed to grow in most of the markets in which it operates.

"The markets where we grew the most were China, Russia and Poland, closely followed by the US and Germany," he said.

Ikea, which employs about 140,000 people around the world, posted record sales in Germany last year and is planning to open as many as 20 stores there over the next decade.

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