Monday 23 October 2017

IKEA comes out of closet with €2.5bn in profits

John Mulligan

John Mulligan

Secretive global Swedish retailer Ikea, which operates stores in Dublin and Belfast, published its headline financial figures for the first time ever yesterday in a bid to improve transparency at the unlisted family controlled firm.

The company, which is the world's largest furniture retailer, said that its net profit climbed 11.3pc to €2.5bn in its 2009 fiscal year (which ran to the end of August last year) even as revenue rose just 1.4pc to €21.8bn in the period as consumers pared back spending in many markets.

Sales have bounced back, however, rising 7.7pc to €23.1bn in the 2010 fiscal year. It will release 2010 profit figures at a later date.

Ikea noted that its net income has stayed between 10pc and 13pc of revenue every year over the past decade. Europe accounted for 79pc of its sales in the last financial year, North America 15pc and Asia 6pc.

Operating income rose 4.4pc to €2.77bn and the company had assets of €37bn and paid €384m in tax in its 2009 fiscal year.

The disclosure of the financial data was prompted on foot of an initiative by IKEA's current chief executive, Mikael Ohlsson, who took up the post a year ago.

He's an Ikea lifer, having joined the company 31 years ago. He wanted to be increasingly transparent to both customers, employees and suppliers.

IKEA employs 127,000 people in 280 stores in 26 countries. It opened its first store in the Republic, in Dublin, in July last year, having opened an outlet in Belfast in 2007.

Irish Independent

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