IKEA grows and creates new jobs in tough economic climate

Net profit FY11 up 10.3% to €2.97 billion

IKEA Group total sales grew by 6.9% to €24.7 billion in FY11. The revenue, including sales and rental income from commercial property, amounts to €25.2 billion. Net profit increased by 10.3% to €2.97 billion thanks to increasing sales and improvements in the cost structure. In spite of increased raw material costs, IKEA lowered prices to customers by 2.6% while the quality of products improved.

“Today, when nations and people face economic challenges, IKEA is more relevant than ever. We are committed to creating a better everyday life at home by offering beautifully designed and functional home furnishing solutions at affordable prices. In FY11 we continued to grow in both mature and emerging markets, we opened seven new stores and welcomed 4 000 new co-workers. Our profit is re-invested in the company and enables long-term innovation, such as finding better, more sustainable solutions and alternative raw materials,” says IKEA Group President and CEO Mikael Ohlsson.

IKEA works hard to build a more sustainable range. This includes responsibly sourced materials, smart design and better transport solutions. A fresh example is swapping traditional wooden pallets for newly designed paper ones. In FY11, IKEA continued to invest in renewable energy sources, such as wind parks and solar panels. Today, with 60 wind turbines and solar PV systems in 40 IKEA units, more than half of the energy is supplied through renewable sources.

The IKEA Foundation increased donations to approximately €65 million during FY11. The vision of the IKEA Foundation is to improve the opportunities of children and youth in the developing world to create a better future for themselves and their families. 100 million children will benefit from current programme commitments by 2015.

IKEA Group Yearly Summary, called “Welcome inside” and IKEA Group Sustainability Report FY10, are available on www.ikea.com. IKEA Group Sustainability Report FY11 will soon be published.

*The fiscal year 2011 of IKEA runs from September 1 2010 to August 31 2011

For further information, please contact: Media Relations IKEA (international), +46 709 936376.

IKEA Services AB
Box 640
S-251 06 Helsingborg
Sweden

Tel: +46 42 26 71 00
Fax: +46 42 13 28 05
E-mail:ikea.pr@ikea.com

IKEA offers well-designed and functional home furnishings at affordable prices. Founded in Sweden in 1943, the IKEA Group today has 287 stores in 26 countries and 130 000 co-workers committed to our vision to create a better everyday life for the many people. Care for people and the environment is integrated in every step of the business. IKEA continuously supports initiatives that benefit causes such as children or the environment. For more information, please visit www.IKEA.com.