Ingka Group: net profit decreases by one-third

03.12.2020 − 

In the 2019/2020 financial year (31 Aug.), the Ingka Group achieved turnover of €37.4bn across all three business divisions Ikea Retail, Ingka Investments and Ingka Centres. The decline of 4.6% compared to the preceding year was mainly due to the corona-related closure of Ikea’s brick-and-mortar stores in various countries for several weeks during spring. According to the company, for certain periods 75% of all its furniture stores worldwide were closed. In the last financial year, Ingka Group’s net profit fell by one-third to €1.2bn.

The majority of Ingka Group’s turnover, €35.2bn, is attributable to the Ikea Retail business division. As of the end of August, this division operated 378 Ikea furniture stores, four XS stores and 16 planning studios in 30 countries, making it the largest franchisee of Inter Ikea Systems. In the last financial year, Ikea Retail opened a total of 26 new locations. This number includes both classic Ikea furniture stores and small-format locations, as well as five new planning studios. The new openings contrast with closure of the Ikea furniture store in the English city of Coventry. In the current 2020/2021 financial year, Ikea Retail plans to open more than 30 new locations in total.

The remaining €2.2bn of Ingka Group’s total turnover is split between investment company Inga Investments and Ingka Centres. Ingka Centres operates 45 shopping centres in 15 different countries in Europe, China and Russia.

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