Ikea reports global profits of £2.36bn

Published on Thursday 13 January 2011 19:03

Flat pack furniture giant Ikea, which is seeking to shed its reputation as a secretive company, continued its programme of increasing transparency yesterday by unveiling record profits of €2.69 billion (£2.26bn).

The world's largest furniture retailer said net profits rose 6 per cent during the year to August as sales grew 7.7 per cent to €23.5bn, with new and existing stores alike contributing to the increase. Individual market growth ranged from double-digit rises to "much less" in other regions, as the impact of the financial downturn varied from one country to the next.

The Swedish firm, which has 280 stores in 26 countries, said it had gained market share in nearly every region where it operates. In the UK, Ikea reportedly accounts for nearly 1 of every 10 spent on furniture, making it the market leader.

The company - with warehouse-sized Scottish stores in Edinburgh and Glasgow - declined yesterday to discuss its performance on a country-by-country level. However, figures released at the end of October show that Ikea sales in the UK and Ireland grew by 1 per cent to 1.2bn during the year to 31 August.

Across the group, China, Russia and Portugal posted the strongest increases.

"In times like this, even more people appreciate value for money in terms of good design and functional home furnishing products at affordable prices, and we are committed to continuing that journey," Ikea chief executive Mikael Ohlsson said.