Owner of Ikea stores sees profit fall on Russia exit

By AFP - Nov 26,2022 - Last updated at Nov 26,2022

This photograph taken on Friday shows an autonomous drone flying in the storage section of Swedish furniture retailer IKEA store of Ghent, in Belgium (AFP photo)

STOCKHOLM — The owner of most Ikea stores, Ingka, reported on Friday a more than five-fold drop in its annual net profit due to higher interest rates and its exit from Russia.

The group said its net profit for the 2022 fiscal year, which ended in August, fell to 287 million euros ($299 million), down from 1.6 billion euros in 2021.

The drop was mainly due to rising interest rates, which hit its financial market investments. Central banks have hiked rates worldwide in efforts to curb soaring inflation.

"The net income was also impacted by the effects of scaling down operations in Russia," the company said.

Foreign firms have left Russia in droves in the wake of Moscow's invasion of Ukraine, and Western sanctions against the country.

The furniture group's holding company, Inter Ikea, also announced a sharp drop in profits due to inflation and the withdrawal from Russia.

Rate

IKEA furnishes strong results despite pandemic

Nov 24,2020

STOCKHOLM — Consumers continued to spend strongly to furnish their homes despite the coronavirus pandemic, the holding company that includes

Ikea counting on price cuts to revive falling sales

Oct 12,2023

STOCKHOLM — Swedish furniture giant Ikea said on Thursday it was counting on price drops launched in September to stem two years of falling

Worst is yet to come for Russia's economy

Dec 21,2014

Deep recession, skyrocketing prices and a fragile banking system: Although the ruble seems to have stabilised after its abysmal drop past week, Russia still faces the heavy consequences of the turbulence.