(dr) Inter IKEA Group
Despite the 26% drop, the financial director of the Inter IKEA Group assures that they are “exactly where they wanted”.
A Inter IKEA Group registered a 26% drop in your profit annual. A drop caused by higher material costs, commercial tariffs and one of the largest price reduction programs in the company’s history.
Despite the 6% increase in sales volume, operating profit fell to 1.7 billion euros in the fiscal year ending August 31st.
The group, which manages the Swedish brand IKEA globally, stated that this decline is the result of a strategy deliberate effort to protect sales in a context of weaker demand and a crisis in the cost of living.
“We ended up exactly where we wanted to”declared the financial director, Henrik Elm, quoted in .
The Swede highlighted that the narrower margins — from 16% to 14% — reflect the effort to maintain the accessibility of products.
The company maintained stable revenues at 26.3 billion euros, benefiting from the replenishment of inventories by retailers following an average drop of 10% in retail prices.
However, tariffs and supply costs affected results, in a context of global uncertainty caused by the United States’ trade policy, and the global economic slowdown.
Inter IKEA also faced new expenses associated with the purchase of retail operations and in the Baltics, including the acquisition of 8,000 hectares of forest in Latvia and the development of a recycled wood sorting facility in Lithuania.
In the coming years, the brand intends to focus its offer on the area of kitchen e food, after betting in the rest segment.
