Ikea proves goldmine for Kamprad

Swedish furniture goliath Ikea is still showing few signs of slowing down. The store’s sales increase last year generated almost 5 billion kronor in royalties to the man who started it all.

Ikea Group’s chief, Anders Dahlving, said the Group is with reaching distance of hitting 160 billion kronor in turnover for the financial year that ended a few weeks ago, according to Dagens Industri.

Some 3 percent of Ikea Group’s turnover goes to Inter Ikea System, a part of Ikea that owns the business concept and trademark. This means the store’s founder Ingvar Kamprad and his family can pull out 4.8 billion kronor.

In two years, the royalty income has increased by 1.5 billion kronor. Today, there is no other Swedish stock holder who can take out that much money from a business.

Ikea’s goal is to continue increasing turnover and to take royalty revenue up to 10 billion kronor after 2010.

It is not known what Inter Ikea Systems does with all of the other billions of kronor it has made beyond its investments in buildings and stocks.