Ikea UK reported operating profits of £49.6mln for the 52 weeks to August 2022 or down £11mln (18%) compared to 2021.
Despite UK sales reaching £2.2bln versus £1.9bln in 2021, global economic setbacks such as the war in Ukraine and re-introductions of taxes slowed the retailers’ profits.
“A post-pandemic backdrop of increased living costs, higher material prices and supply chain challenges inevitably shaped our business in 2022”, said the Swedish group's 2022 annual financial report.
“The major global and economic issues, the war in Ukraine, and the subsequent inflationary pressure had a significant impact… the reintroduction of property taxes following the pandemic holiday period resulted in a 5% increase in our operating costs” Ikea’s annual report stated.
“Growth and profit give us resources to continue to develop the business and last year we saw healthy financial results, including 13% [revenue growth] and 2.3% net operating result” added Constantinos Mourouzides, CFO at Ikea UK.
Online sales doubled compared to pre-pandemic but were down 10% compared to a year ago.
The furniture retailer revealed its strategy focused remained to offer prices as possible.
“Affordability will continue to be a key cornerstone for us, and our intention remains to keep our prices as low as possible” the report concluded.