IKEA announces 3.3 billion net profit for 2013/14
The world’s largest furniture retailer, IKEA Group announced their fiscal profit for the previous year on Wednesday. It was the same as a year before, although they said that the European markets continued to rise and improve.
The Swedish budget furniture corporation, the owner of the majority of IKEA stores around the globe, received net profit of 3.3 billion Euro (equal to $3.7 billion) in September 2013 until August 2014.
A representative of IKEA said that even though the markets were improving, the profit still stayed the same mostly because of IKEA’s 200 million Euro employee loyalty program. Another factor was the 98 million Euro cost associated with a high number of employees participating in their bonus program.
Peter Agnefjall, chief executive of IKEA, released a statement saying that in the previous year, the company grew in most of their markets, especially in Russia, China and Hungary. He continued, that North America also performed rather good and even though the economic situation in Europe is still challenging, there was still improvement there as well. Most of the Southern Europe grew, which was really a positive sign and the profits were as expected.