IKEA announces profits jump

IKEA’s profit jumped 10.3% last year as the Swedish furniture retailer increased sales, despite economic uncertainty in some of its key markets.

IKEA said it made a net profit of €2.96bn in the year ending August 31, while revenue grew 6.9% to €25bn.

Chief executive Mikael Ohlsson said sales growth had accelerated since September, even as the debt crisis in Europe pummelled markets around the globe.

Mr Ohlsson said IKEA was examining the details of recent legislation that will open up India to foreign companies and allow large single-brand retailers to own 100% of their stores there.

He said IKEA would only open stores in the fast-growing country once it was sure laws would not interrupt its cherished value chain.