Ikea saw its net profit melt away last financial year. Sales did grow by 5.7 %, but investments and the economic turmoil meant the furniture chain’s profits took a heavy beating.
Russia to blame too
Ikea’s Ingka Group ended its financial year 2022 with a net profit of 0.3 billion euros – just a fifth of last year’s 1.5 billion. The furniture giant mainly blames rising interest rates and poor stock market figures, which negatively affected the group’s investments. The group also had to pay higher taxes, while the reduction of operations in Russia also cost the Swedish chain a fair amount.
Meanwhile, Ikea raised its sales by 5.7 % to 42 billion euros, as 52 new stores opened and the chain also started operating Livat shopping centres in London and Toronto. The group also invested 2.6 billion euros in the last year, and aims to continue that pace.