SWEDEN - Total revenue for the IKEA Group (Ingka Holding B.V. and its controlled entities) during financial year 2016 reached EUR 35.1 billion, up 7.4% from last year.
The IKEA Group stores had 783 million visits during the year. Net income amounted to EUR 4.2 billion. An announced financial frame of EUR 1 billion, takes investments earmarked for sustainability to over EUR 3 billion and to share its business success with co-workers, a total of EUR 443 million was set aside for co-worker loyalty and bonus programs.
Strong sales growth contributed to making FY16 another profitable year. With the aim of becoming the world’s leading home furnishing multi-channel retailer, IKEA Group is expanding and developing new capabilities in in-store and online shopping to cater to people’s ever changing needs.
China remains one of the fastest growing markets for IKEA Group, while the five largest retail markets based on sales value were Germany, USA, France, UK and Sweden. IKEA Group opened 12 new stores, 19 new format Pick-up and Order points and further developed its multi-channel distribution network. Work also continued on opening the first IKEA stores in India and Serbia. IKEA Family also became one of the world’s largest membership clubs during the year, reaching 100 million members.
“Growth and profitability give us the freedom to choose our own way, the flexibility to move fast and the independence to think and invest long term,” said Peter Agnefjäll, President and CEO, IKEA Group. “We are in a good place and we have an exciting journey ahead with a strong focus on continuous growth and efficiency in our operations.”
IKEA Group is committed to having a positive impact on people and the planet and has allocated over EUR 3 billion to become resource and energy independent. This includes a financial frame of EUR 1 billion, announced December 5th, to secure a long-term supply of sustainable materials by investing in forestry as well as companies active in recycling, renewable energy development and biomaterial developments. And it includes the EUR 1.5 billion invested in wind and solar energy projects since 2009 and EUR 600 million allocated for further investments to become energy independent, producing as much renewable energy as IKEA Group consumes in its own operations by 2020.
By increasing focus on retail and retail innovation and utilizing existing resources and capabilities, IKEA Group will continue to strengthen its business, thereby creating growth that builds value for customers. “We want to offer our customers a great experience at every touch point, whether it is online or in-store. We cannot do this without our dedicated and professional co-workers, who have contributed to making FY16 a fantastic year for the IKEA Group. As a profitable company we share our business success with our co-workers, that’s why we set aside EURO 108 million for our co-worker loyalty program Tack! and EUR 335 million for our bonus program, a total of EUR 443 million during the year,” concludes Peter Agnefjäll.
