Record profits at Ikea after a year of global growth
Swedish retail giant Ikea has delivered record annual profits, driven by cash-strapped consumers seeking out its flat-pack furniture globally.
Alongside its results, Ikea's chief executive attacked government planning regulations in Europe for slowing down its expansion in the region, which accounts for the bulk of the group's business.
Mikael Ohlsson said it previously took between two and four years to complete the planning and construction of stores but added it now takes up to eight years.
Ikea, which was established in Sweden in 1943 by Ingvar Kamprad, grew its net profit by 8 per cent to €3.2bn (£2.6bn) over the year to 31 August. This was driven by a 9.8 per cent rise in sales to €27.6bn by its operations in 44 countries, as well as a "continued" focus on costs.
Mr Ohlsson said: "People around the world are more value conscious and appreciate beautifully designed and functional home-furnishing solutions at affordable prices.
"In financial year 2012, we managed to grow in most markets. The markets where we grew the most were China, Russia and Poland, closely followed by the US and Germany.
"We opened 11 new stores and welcomed 8,000 more co-workers."
Ikea, which has 18 UK stores, plans to open another shop in Reading but declined to provide a timeframe. The retailer cited market-share gains in the home-furnishing sector, as it grew its UK sales by 6.3 per cent to £1.23bn in 2011-12 but did not disclose profits.
Ikea UK's pre-tax profits tumbled by 34 per cent to £23.6m over the year to 31 August 2011, according to its latest accounts at Companies House.
International Women's Day 2014: The shocking statistics that show why it is still so important
Feminist quotes to inspire you on the International Women's Day
Oscar Pistorius trial first week: Never mind a media scrum – murder case becomes bizarre safari following the tracks of a wounded lion
International Women’s Day: 'When a man gives his opinion, he's a man. When a woman gives her opinion, she's a bitch' - feminist quotes from female icons to inspire you
Malaysia Airlines plane: Hundreds feared dead as Vietnam air force finds oil slicks found in sea
Apple's Tim Cook: Business isn’t just about making profit
Thousands of young people forced to go without food after benefits wrongly stopped under 'draconian' new sanctions regime
Ukraine crisis: New navy chief 'defects' and surrenders Crimean HQ as Putin claims ultranationalists forced intervention
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Ukraine crisis: Russia dismisses '3am ultimatum' as 'total nonsense'
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
- 1 To those who can’t see the point of International Women’s Day: you are the very reason it exists
- 2 International Women's Day 2014: The shocking statistics that show why it is still so important
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Orgasm machine to deliver climax at the push of a button
- 5 Liam Neeson turned down James Bond role because Natasha Richardson said she wouldn't marry him if he took it
iJobs Money & Business
£12000 per annum: Inspiring Interns: The company works with Tier 1 FTSE 100 Ba...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...