Ingka Group, the largest IKEA retailer, announces Euro 41.8 billion in FY24 revenue, representing a 0.5% decline compared to Euro 42 billion in FY23. Despite economic challenges, including high interest rates and inflation, the company prioritized affordability by reducing prices by Euro 2.1 billion, leading to a 3.3% increase in store visitation and a 28% rise in online traffic, with online orders growing by 9%.
IKEA Retail accounted for Euro 39.6 billion of total revenue, a 5% decrease compared to Euro 41.7 billion in FY23. Despite this decline, Ingka Group invested Euro 3.4 billion in areas such as fulfillment, customer experience, and renewable energy. Operating income stood at Euro 1.3 billion, down 35% from Euro 2.0 billion in FY23, while net income dropped by 47%, from Euro 1.5 billion to Euro 0.8 billion.
The company’s ownership model allows for reinvestment of 85% of net profits, with the remaining 15% allocated as dividends to its sole owner, Stichting INGKA Foundation. This foundation supports philanthropic efforts through the IKEA Foundation, which has granted Euro 2 billion to tackle poverty and climate change.
In line with its goal to reduce its climate footprint by 85% by 2030, Ingka Group invested Euro 1.5 billion in renewable heating and cooling technologies. Eleven retail units across seven countries were retrofitted in FY24. Ingka Investments has committed Euro 4.2 billion to renewable energy projects, aiming for a total investment of Euro 7.5 billion by 2030.
Ingka Centres achieved strong results, driven by European and Chinese portfolios. FY24 highlights include acquiring Churchill Square in the UK, opening a plant-forward food hall in San Francisco, and inaugurating a Livat meeting place in Xi’an, China. The group completed its exit from the Russian market, selling 14 MEGA meeting places in September 2023.
In FY24, Ingka Group's global tax contributions amounted to Euro 1.2 billion, including Euro 0.8 billion in corporate income tax. The company emphasized its commitment to reinvesting profits into business growth and sustainability while supporting charitable initiatives through its foundation.
