IKEA financial secrets revealed

ONE of the world’s great commercial secrets – furniture group IKEA’s profits and turnover – have been revealed for the first time.

Profit at the world’s top furniture retailer and manufacturers had risen 11.3% to €2.5bn in the 2009 financial year compared with the previous year.

IKEA chief executive Mikael Ohlsson told his local paper the Dagens Industri that turnover in its fiscal year, which ended August 31 rose to €23.1bn, up some 7.7% from the previous period. Mr Ohlsson is working hard to give employees, suppliers and customers more information about the company

IKEA, known for low-price, self-assembly, flat-packed furniture and owned by a foundation controlled by founder Ingvar Kamprad, had kept its financial workings shrouded in secrecy.

“We are admittedly never completely satisfied. But it was much better than we had expected and a much better outcome keeping in mind the extremely tough business climate in many markets,” Ohlsson told the paper.

“We are definitely taking market share now,” Ohlsson said, adding that low costs and efficiencies helped the company maintain its good profitability.

The Swedish group, which has 280 stores in 26 countries.

The family-controlled group said it paid €384m in tax in 2009. Operating income rose 4.4% to €2.77bn while its assets totalled €37bn.