• Sweden edition
 
Ikea assembles record profits for 2011

Ikea assembles record profits for 2011

Published: 20 Jan 2012 12:43 GMT+01:00
Updated: 20 Jan 2012 12:43 GMT+01:00

The world's largest furniture retailer, which is an unlisted, family-owned company that only recently began releasing more regular earnings reports, said in its annual statement that its net profit rose 10.3 percent to €2.97 billion ($3.85 billion) during its 2011 fiscal year -- September 2010 to August 2011.

Global sales meanwhile jumped 6.9 percent to €24.7 billion, Ikea said, adding that "sales grew in almost all countries with our biggest gains being in Russia, China and Poland."

"We have gained market share in more or less all markets," company president and chief executive Mikael Ohlsson said in a statement.

"Despite price increases for many raw materials, we have lowered prices to our customers with 2.6 percent, while the quality of our products has improved," he said, explaining the strong results.

Ikea's chief financial officer Sören Hansen meanwhile pointed out that the fiscal year had "been a challenging period for many of us," but since "being cost conscious is part of the Ikea DNA ... we're fortunate to have the resources to safely navigate uncertain economic climates."

In fact, the company was doing so well, he said that it planned to invest around three billion euros in 2012 "in stores, factories and retail centres, as well as in the expansion of our wind farms and solar power sources."

The company meanwhile said higher purchase prices and growing investments had sent its gross margin down to 44.2 percent during the 2011 fiscal year from 46.1 percent a year earlier.

During the financial year, Ikea said it opened seven new stores in seven countries and at the end of August counted a global total of 287 stores in 26 countries.

The company added 4,000 new employees to its payroll during the fiscal year 2011 bringing the total to 131,000.

Europe accounted for 79 percent of sales, while North America stood for 14 percent and Russia and Asia and Australia making up the remaining seven percent.

AFP/The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

12:57 January 21, 2012 by Nemesis
I noticed the article does not mention how much tax that IKEA paid during the same period?
13:13 January 21, 2012 by skogsbo
yeah, he only employees 10,000 in Sweden, all of whom pay tax and the company will be paying employer contributions. He has only given 1 Billion Krona to his home country too. It's shocking ;)

At least 1 swedish business is booming. If Sweden had 9 or 10 companies like, the economy would be booming too.
17:25 January 22, 2012 by BillyB
Head quarters in Holland, registered in Holland, trademark and brand owned by a dutch registered company...IKEA isn't really Swedish
20:04 January 22, 2012 by JoeSwede
I wonder if you add IKEA's owner to the Swedish populance if you would then obtain the same income distribution as the US.

In otherwords... if you included the Wahlenberg fortune and the IKEA owner, would Sweden have the same income distribution as the US?

People always claim that Sweden has a lot less income disparity than the US but I think mathematically it doesn't (Gine coefficient etc.). It only takes a couple of people who conviently are not included and then Sweden would have the same distribution as the US.

(of course healthcare and subsidized apartment building do provide a feeling of stabilization that equates with more eveness of income vs the US)
Today's headlines
Listeria fears prompt meat recall in Sweden
File photo: Andreas Hagerman/Flickr

Listeria fears prompt meat recall in Sweden

After finding traces of listeria in ham sold in Sweden, food companies decided on Friday to recall several Danish cold cuts. READ  

Sweden Floods
More rain expected as floods hit day four
Photo: Anders Kjellberg/TT

More rain expected as floods hit day four

UPDATED: Sweden's floods showed no signs of abating over Thursday night, with highways closed, emergency teams working overtime, and more rain on the way. READ  

Ikea opens first store in the Balkans
An Ikea city centre store in Hamburg. Photo: TT

Ikea opens first store in the Balkans

Swedish furniture giant Ikea has opened its first store in the former Yugoslavia, near Croatia's capital Zagreb. The move marks the company's first step in an expansion to the Balkans market. READ  

Elections 2014
'Sweden Democrats hold the key to elections'
Jimmie Åkesson. Photo: Bertil Ericson/TT

'Sweden Democrats hold the key to elections'

With national elections around the corner, political scientist Stig-Björn Ljunggren says there's a hive of activity behind the scenes, and that the right-wing nationalist party could end up being the key player. READ  

Swedish artist jailed for 'race hate' pictures
Police arrested Dan Park (pictured) and confiscated his art works at an exhibition opening on July 5th. Photo: Drago Prvulovic/TT

Swedish artist jailed for 'race hate' pictures

A Malmö court has sentenced Swedish street artist Dan Park to six months in jail for incitement to racial agitation and defamation. READ  

Elections 2014
Sweden elections: How do they work?
Casting a vote. Photo: Shutterstock

Sweden elections: How do they work?

National, regional, and local elections are taking place in Sweden on September 14th. Whether you're a first-time voter or a fresh armchair observer, The Local's beginners' guide will answer the key questions you were too afraid to ask. READ  

Sweden orders textbook on Roma discrimination
A Romani language class in Malmö. Photo: Drago Prvulovic/TT

Sweden orders textbook on Roma discrimination

The Swedish government has asked a new commission to create school materials based on a white paper documenting Swedish discrimination of Roma. READ  

Day-care rapist
Day-care rape suspect 'was mentally ill'
Photo: TT

Day-care rape suspect 'was mentally ill'

Social services have ruled that a day-care intern charged with molesting 14 children in southern Sweden was "seriously mentally disturbed". READ  

What's On in Sweden

What's On in Sweden

Autumn has arrived in Sweden, which means grey skies are approaching. But summer goes out with a skip, hop, and a bang - the annual Color Run is taking place in Stockholm this weekend. READ  

Surströmmingspremiär
Swedes celebrate first day of smelly fish season
Photo: Hasse Holmberg/TT

Swedes celebrate first day of smelly fish season

On the third Thursday of each August, Swedes celebrate the start of the fermented herring season. The Local finds out more about the worst-smelling food on earth, and collects some of the best reaction videos. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Finest.se
Gallery
People-watching August 20th
Society
Did you know the Bronx in NYC was named after a Swede?
Politics
"Iraq reminds me of the Yugoslav wars. It's the same story."
Society
Swedes slam Danes for 'racist' art
National
Majority of Swedes favour more or just as many refugees
Blog updates

17 August

Sea Fever (Around Sweden in a kayak) »

"I’m going to keep this post short and sweet as its not something I take any pleasure in writing. After much deliberation I have made the heartbreaking decision to abandon my trip after 1200km due to reoccurring injury. It is not a decision I have made lightly and it is one that has been truly devastating..." READ »

 

17 August

St. Louis strong (Blogweiser) »

"It’s typically a bad sign when my hometown makes news in Sweden. St. Louis was in the headlines here a few years ago when a tornado struck the airport. The city also caught attention after a politician talked about ‘legitimate rape’. Now, shooting and riots this week in Ferguson, a part of St. Louis, are..." READ »

 
 
 
Society
Lock your bathrooms: Swedish toilet invader on the the loose
Politics
'Assange will not leave until safe'
Gallery
See more images from the southern Sweden floods
Sponsored Article
Find out what gives this Swedish school executive appeal
Society
Serial chicken smuggler caught at Norway border. Again.
Society
This gold coin may be the key to solving a Swedish massacre
Shutterstock
Lifestyle
The Swedish mentor (and why you may need one)
National
Food agency warns girls: 'Don't eat stinky fish'
Politics
Reinfeldt calls for tolerance to refugees
Gallery
People-watching August 16-17
National
Sweden celebrates 200 years of peace
Society
Top ten literal Swedish words
Politics
'Terror training should be illegal': Liberal Party
Gallery
Swedes talk about 200 years of national peace
Politics
Islamic extremist shakes Sweden with TV threat
National
Teacher fined for 'Hitler salute' in German class
National
Swede asks for epidural and gets disinfectant
Features
Kiruna residents talk life in a town on the move
National
Swedish dad takes kids to Israel to learn about war
Skatteverket
Sponsored Article
Introducing... ID cards and permits in Stockholm
Sponsored Article
Introducing...Your finances in Stockholm
Sponsored Article
Introducing...Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

703
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se