Growth in China, Russia and US contribute to IKEA profit hike

The IKEA Group net income increased by 3.1% to EUR 3.3 billion ($4.2 billion) for the financial year 2013; and market conditions continued to improve with strong growth in China, Russia and the US. IKEA US FY13 comparable store sales grew by 6.7%.Ikea_multistory_Leeds

“Consumer spending is improving in many countries. 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”, says President and CEO, Peter Agnefjäll.

Sales increased by 3.1% from last year to EUR 27.9 billion ($36.2 billion*) and the IKEA Group gained market share in almost all markets. Together with the rental income from our shopping centers, the total revenues amounted to EUR 28.5 billion ($37 billion*)(+3.2%). The largest markets were Germany, the US, France, Russia and Sweden.

“This indicates that value for money is increasingly important. I’m especially happy to see customers embracing our range of products designed to help them live a more sustainable life at home. For example, customers bought more than 22 million LED products in FY13 alone, saving them energy and money”, continues Peter Agnefjäll.

The IKEA Group has an ambitious growth agenda, aiming for EUR 50 billion ($65 billion*)in sales by 2020. The large emerging markets are important sources of future growth. In FY13, the IKEA Group opened two more stores in China – another step in the expansion on the Chinese market.

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

Source: IKEA

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