IKEA net profit increases to 3.5b euros in FY14/15

[STOCKHOLM] IKEA Group, the world's biggest furniture retailer, said on Thursday net profit grew 5.5 per cent in its fiscal full year, primarily on the back of sales growth in existing stores, helped also by new store openings and strong online sales growth.

Net profit at the Swedish flat-pack self-assembly budget furniture company, which owns most IKEA stores, was 3.51 billion euros (S$5.4 billion) in the 12 months through August 2015, against 3.33 billion the year before.

"While the growth is well distributed across most markets, Germany shows record growth and also Southern Europe is seeing a positive development. North America continues to do well," chief executive Peter Agnefjall said in a statement.

IKEA said it had offset lower prices to customers with lower purchase prices and increased efficiency in its supply chain.

REUTERS