IKEA Group profit and turnover up 3 %

IKEA Group profit and turnover up 3 %

Swedish home furniture group IKEA managed to increase both its turnover and profit 3.1 % in its latest fiscal year. China, Russia and the United States grew the most, while Europe is “showing signs of recovery”, according to IKEA.

27.9 billion euro turnover

IKEA Group’s fiscal year 2013 ended on 31 August and had an increased profit (reaching 3.3 billion euro) and turnover (to 27.9 billion euro). If you add the rental worth of the shopping centres IKEA Group has, the total turnover reached 28.5 billion euro. That is what the group has stated in its yearly summary

Consumer spending is improving in many countries”, president and CEO Peter Agnefjäll said. “While the challenging economic situation may not be over, there are positive signs. Important consumer markets such as the US are coming back and Europe in general is starting to recover. Even some of the challenging markets in Southern Europe are showing good signs of activity.”

Larger market share

IKEA Group has managed to enlarge its market share in pretty much every market, according to the company itself. Germany, the United States, France, Russia and Sweden are the largest markets

“This indicates that value for money is increasingly important”, he said, referring to the success of sustainable products. “For example, customers bought more than 22 million LED products in FY13 alone, saving them energy and money.”

IKEA has opened 5 new stores in its previous fiscal year: two in China (Ningbo and Shanghai) and one in Spain (Barcelona), Sweden (Uddevalla) and Canada (Winnipeg). 

"Keep growing"

The CEO confirmed its ambitious growth plans once again, to reach a 50 billion euro turnover in 2020, despite some confusion recently surrounding these plans.

“We have a long-term focus. We’ll keep developing better products at lower prices, improving the shopping experience and becoming more accessible to our customers, for example through an improved service offer, e-commerce and continued expansion”, Agnefjäll emphasized.

“Our ownership structure and sound financial principles give us independence and the possibility to grow in a balanced and sustainable way”, he concluded.