Home Builder Developer - Interior Renovation and Design

CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--

In the fiscal year 2012*, IKEA Group total sales increased by 9.5% (7.1% adjusted for currency impact) and sales in existing stores grew by 4.6% adjusted for currency impact. Our net profit increased by 8.0% to $4.2 billion ** (3.2 billion), thanks to the higher sales volume and a continued cost focus. Meanwhile, IKEA continued lowering prices for customers and further improved product quality. Over the past decade, IKEA has continued to lower prices to customers.

IKEA US FY12 comparable store sales grew by 8%, total sales grew by 11%.

The IKEA business idea is more relevant than ever. People around the world are more value conscious and appreciate beautifully designed and functional home furnishing solutions at affordable prices. In FY12, 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, says Mikael Ohlsson, President and CEO of the IKEA Group.

Today, the IKEA Group has 139,000 co-workers, and 47% of all managers are women. Profits were reinvested in new and existing stores, more than 2,000 inspiring products, new and better services, and in e-commerce. Considerable investments were also made in renewable energy. Today, IKEA produces renewable energy equivalent to a third of its total energy consumption.

We believe in sustainable growth, by expanding from our own resources, making long-term decisions and growing within the limits of the planet, says Mikael Ohlsson.

During FY12, the IKEA Group released a new sustainability strategy, People & Planet Positive. The strategy is an integrated part of the business and outlines new goals and actions for delivery up to 2020. We committed to invest $1.9 billion (1.5 billion) in renewable energy. Strong progress within sustainability is presented in the IKEA Group Sustainability report FY12, released today.

In 2012, the IKEA Foundation increased its donations to $109 million (82 million) to improve opportunities for children and young people in the developing world. The IKEA Group Yearly Summary FY12, the IKEA Group Sustainability Report FY12 and People & Planet Positive strategy are available at http://www.ikea.com.

US Highlights

US Sales and Services: US comparable store sales grew by 8% in FY12 and total sales grew by 11%. In FY12, IKEA US continued to lower prices on some of its best-selling items, including a 22% reduction on the POANG chair and a 25% reduction on the MALM queen bed frame. These price reductions were part of IKEAs continued effort to make products accessible to the many people, while not compromising quality.

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The IKEA Group is Growing and Financially Strong

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