Ikea Ireland's profits more than doubled to €15.75m last year

Ikea Ireland's revenues rose by only 0.36% to €247.33m amid subdued consumer confidence due to the cost-of-living crisis

Ikea Ireland's pre-tax profits of €15.75m last year are a 128% increase on the 2024 pre-tax profits of €6.9m. File picture: Barry Cronin

Pre-tax profits at the Irish arm of Swedish furnishing giant Ikea last year more than doubled to €15.75m despite revenues remaining flat due to consumer confidence here remaining subdued.

New accounts just filed by Ikea Ireland Ltd show that the profits surged as revenues increased by only 0.36% from €246.46m to €247.33m in the 12 months to the end of August last.

The pre-tax profits of €15.75m last year are a 128% increase on the pre-tax profits of €6.9m for the prior year.

The directors state that the company “had a strong financial performance” as total retail sales reached €247.3m “despite a challenging economic backdrop where consumer confidence remained subdued due to continued pressure on household spend”.

The directors state that Ikea recorded a 134% increase in operating profit to €16.45m “due to a return to more normalised levels of investment after a substantial €12m investment in a Central Distribution Centre (CDC) in FY24”.

The directors state that overall, the company’s gross margin increased slightly to 34.9% from 31% “and this improvement was driven by better purchasing prices, optimisation of our fulfilment network, and cost efficiencies”.

The directors state that FY25 “saw targeted investments aimed at enhancing Ikea’s accessibility for customers across Ireland”.

The directors state this investment included the opening of the Waterford Plan and Order Point which marked the brand's seventh of its kind and its largest outside of Dublin.

Online sales up 10.4% 

The directors state that “online sales rose by 10.4% year-on-year and now represent almost 40% of total sales. To support this momentum, Ikea strengthened its online fulfilment capabilities throughout the year.” 

On future developments, the directors state that “we’re on an expansion journey in Ireland. In FY25 we continued to build on the strong base of FY24 in terms of increased co-worker engagement, improved customer satisfaction and growth in market share”.

The directors state that they believe that Ikea Ireland “is well positioned for continued growth within the country”.

The firm paid no dividend last year after paying out a dividend of €20m in 2024.

After taking into account net interest payments of €698,265, the firm recorded the pre-tax profit of €15.75m.

The firm recorded post-tax profits of €13.79m after incurring a corporation tax charge of €1.96m.

Staff costs and directors' pay fell  

Numbers employed by Ikea Ireland reduced by 38 from 744 to 708 as staff costs declined from €23.99m to €23.32m.

Aggregate pay to directors decreased sharply from €342,284 to €205,422.

The profits take account of non-cash depreciation costs of €3.82m while operating lease charges increased from €2.38m to €3.44m.

Shareholder funds totalled €46.37m, which included accumulated profits of €41.37m.