• Sweden's news in English

Ikea assembles record-breaking profits

TT/AFP/The Local · 1 Oct 2010, 17:58

Published: 01 Oct 2010 14:05 GMT+02:00
Updated: 01 Oct 2010 17:58 GMT+02:00

Facebook Twitter Google+ reddit

The company hauled in 211 billion kronor ($31.3 billion) in revenues over the past year, up 8 percent from the previous year, enough to yield a pre-tax profit of 26.5 billion kronor according to the company's first annual summary of its financial details.

Ikea is an unlisted, family-owned company and until now has not released

regular earnings reports.

"2009 was a tough year. After a longer period of increased costs for energy, food and housing, the economic crisis put further strain on everyone's income," Ikea vice-president and chief financial officer Sören Hansen said.

"During this challenging year, we have seen the importance of value for money increasing and, as a result, we have been able to attract even more customers to our stores," he said in the company's earnings report.

Friday's report also included some figures on the company's year to August 2010, with sales up 7.7 percent.

Ikea CEO Mikael Ohlsson, told business daily Dagen Industri (DI) thatthe company expects to increase its market share as it forges ahead with expansion in Russia and China, and eyes establishing stores in Serbia and Croatia.

In addition, Inter Ikea, which owns the Ikea concept and brand and is owned by the family of Ikea-founder Ingvar Kamprad, received 6.3 billion kronor out of Ikea’s operations during the last fiscal year, according to DI.

Story continues below…

Ikea - famed for its flat-pack stylish furniture - has 280 stores in 26 countries. Some 204 stores are in Europe, which accounted for 79 percent of its year to August 2010 sales.

The usually secretive company also said Friday that its board decided in December 2009 to release a financial results summary annually.

"The yearly summary is aimed at our co-workers and suppliers as well as other stakeholders, who have shown an increasing interest in knowing more about different parts of Ikea," said Mikael Ohlsson, who took over as CEO in 2009.

TT/AFP/The Local (news@thelocal.se)

Facebook Twitter Google+ reddit

Your comments about this article

14:44 October 1, 2010 by patbreslin
IKEA is the living embodiment of the adage "A fool and his money are soon parted"
14:59 October 1, 2010 by Sam1
I respect this company!!! its a big income to Sweden...They are like Microsoft to USA...

Go IKEA!!!
16:22 October 1, 2010 by rafa1981
Ingvar Kamprad is the master.
22:20 October 1, 2010 by whatnowki

Ingvar Killed Everyone Antiques
01:06 October 2, 2010 by dobermann
I respect this company!!! its a big income to Sweden...They are like Microsoft to USA...

Go IKEA!!!

I wouldn't be so sure as long as Ingvar has his tax avading scemes working..This guy is smart, I can't dissagree with that, but he isn't a good guy who can be taken as an example
08:31 October 2, 2010 by rafa1981
Well at least he was able to have a multinational and the most important, to keep his ownership, yo don´t see that so many times.
13:20 October 2, 2010 by seanthesheep
And when is IKEA going to start paying its fair share of income tax on its earnings?

The highly respected Economist magazine has alleged that former Nazi IKEA boss Ingvar Komprad's supposedly "charitable" Stichting INGKA Foundation uses the foundation structure for corporate tax-avoidance.


14:03 October 2, 2010 by seanthesheep
The article on IKEA's tax avoidance set up is at:

09:36 October 3, 2010 by Puffin
Dalarna is looking forward to getting its first IKEA
00:38 October 9, 2010 by Swedesmith
Wow, crappy furniture that's not made in China. Go figure.
Today's headlines
Here's how slow Sweden's high-speed trains are getting
A Swedish SJX2000 high speed train. Photo: Tomas Oneborg/SvD/TT

The high-speed rail journey between the three biggest Swedish cities is about to get longer.

The Local List
12 Swedish words with just awesome literal translations
A filthy-minded lobster, i.e. a snuskhummer. Photo: Gorm Kallestad/NTB scanpix/TT

One of our favourite things about the Swedish language is its wonderful compound words, which range from being utterly bizarre to making perfect sense.

US election
Donald Trump won't get new Ericsson head's vote
Trump pictured at a campaign rally in Florida. Photo: Evan Vucci/AP

The new Swedish-American boss of telecoms giant Ericsson has revealed he will not vote for the Republican nominee in the forthcoming US presidential election.

Swedes named fourth most gender equal in the world
A file photo of men and women pushing prams in Stockholm. Photo: Claudio Bresciani/TT

Sweden has closed 81 percent of its overall gender gap according to the World Economic Forum.

Sweden: Russian warships in the Baltic 'worrying'
Swedish Defence Minister Peter Hultqvist. Photo: Vilhelm Stokstad/TT

Two Russian warships equipped with long-range missiles have entered the Baltic Sea after passing Denmark.

Why businesses are worried about Sweden's drone ban
A drone filming in Stockholm. Photo: Pontus Lundahl/TT

The Local investigates what Sweden's new drone ban could mean for businesses in the country.

This is the new top boss of Swedish Ericsson
Börje Ekholm. Photo: Magnus Hjalmarson Neideman/SvD/TT

Telecoms giant Ericsson has appointed a new CEO after a turbulent year for the company.

These are Sweden's best universities: ranking
A new university ranking has been released. Photo: Cecilia Larsson Lantz/Imagebank.sweden.se

At least according to this global ranking, which picks 12 Swedish universities among the top-1000.

Swedish pharmacies restrict paracetamol sales for teens
The move is intended to cut paracetamol overdoses. Photo: Nora Lorek/TT

Sweden's pharmacies are banning teens under 18 from buying more than one pack of pills at a time.

Rwandan genocide suspect held in Sweden
A memorial centre in Kigali, Rwanda. Photo: Ben Curtis/AP

A man has been arrested in Sweden suspected of involvement in the 1994 Rwandan genocide which claimed 800,000 lives.

Sponsored Article
Stockholm: creating solutions to global challenges
Sweden cuts 2016 refugee forecast
Sponsored Article
Last chance to vote absentee in the US elections
Is Game of Thrones coming to Sweden?
Property of the week: Kungsholmen, Stockholm
Blog updates

6 October

10 useful hjälpverb (The Swedish Teacher) »

"Hej! I think the so-called “hjalpverb” (auxiliary verbs in English) are a good way to get…" READ »


8 July

Editor’s blog, July 8th (The Local Sweden) »

"Hej readers, It has, as always, been a bizarre, serious and hilarious week in Sweden. You…" READ »

Sponsored Article
This is Malmö: Football capital of Sweden
Will Swedes soon be looking for fairtrade porn?
Sponsored Article
Where is the Swedish music industry heading?
The Local Voices
'I simply don’t believe in nationality'
Why we're convinced Game of Thrones is based on Sweden
People-watching: October 21st-23rd
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
Fury at plans that 'threaten the IB's survival' in Sweden
Sponsored Article
Swedish for programmers: 'It changed my life'
Analysis & Opinion
Are we just going to let half the country die?
Angry elk chases Swede up a lamp post
Sponsored Article
Top 7 tips to help you learn Swedish
The Local Voices
'Alienation in Sweden feels better: I find myself a stranger among scores of aliens'
Sponsored Article
‘Extremism can't be defeated on the battlefield alone’
People-watching: October 20th
The Local Voices
A layover at Qatar airport brought this Swedish-Kenyan couple together - now they're heading for marriage
Sponsored Article
Stockholm: creating solutions to global challenges
Swede punches clown that scared his grandmother
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
Fans throw flares and enter pitch in Swedish football riot
Sponsored Article
Where is the Swedish music industry heading?
Could Swedish blood test solve 'Making a Murderer'?
Sponsored Article
One expat's strategy for making friends in Stockholm
Swedish school to build gender neutral changing room
Sponsored Article
Nordic fashion in focus at Stockholm University
People-watching: October 14th-16th
Man in Sweden assaulted by clowns with broken bottle
Nobel Prize 2016: Literature
Watch the man who discovered Bob Dylan react to his Nobel Prize win
Record numbers emigrating from Sweden
People-watching: October 12th
The Local Voices
'Swedish startups should embrace newcomers' talents - there's nothing to fear'
How far right are the Sweden Democrats?
Property of the week: Triangeln, Malmö
The Local Voices
Syria's White Helmets: The Nobel Peace Prize would have meant a lot, but pulling a child from rubble is the greatest reward
jobs available