IKEA reports increased profits as market share grows
The IKEA Group saw its profit increase by 3.1% to Â€3.3 billion in the 2013 financial year as market conditions improved with strong growth in China, Russia and the US.
In the year to 31 August 2013, sales increased by 3.1% year-on-year to €27.9 billion and the group gained market share in almost all of its markets. Together with the rental income from its shopping centres, total revenues amounted to €28.5 billion, which represented a rise of 3.2%. The group’s largest markets were Germany, the US, France, Russia and Sweden.
IKEA Group president and chief executive Peter Agnefjäll said: “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.”
The IKEA Group is aiming to achieve €50 billion in sales by 2020 and regards large emerging markets as important sources of future growth. In the 2013 financial year, the IKEA Group opened two stores in China as it expanded further in the Chinese market.
Agnefjäll added: “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.”
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