NETHERLANDS - Ingka Group reported a total revenue of EUR 37.4 billion (EUR 39.2 billion FY19) for FY20 across its three business areas (IKEA Retail, Ingka Investments and Ingka Centers), despite the challenges presented by the COVID-19 pandemic.

The company remains guided by its commitments to people and planet and has continued to accelerate investments in online and sustainability – and to make strides on its transformation journey.

For several weeks during the peak of the pandemic, Ingka Group had to close 75% of its IKEA stores. The company, however, still achieved a EUR 1.2 billion (EUR 1.8 billion FY19) net profit, and these resources will go back to the business. Capital expenditure amounted to EUR 2.1 billion, including extensive investment in physical stores, digital customer experience, renewable energy and forestry, as the company continues to become more affordable, accessible and sustainable.

IKEA Retail recorded total sales of EUR 35.2 billion (EUR 36.7 billion FY19). The company quickly adapted to make fast changes to speed up repurposing its stores to fulfilment centers and increasing affordable services for safe pick-up and delivery. Online sales grew by 60% (48% FY19), amounting to about 18% of total sales (11% FY19).

Juvencio Maeztu, Deputy CEO and CFO Ingka Group, said: “This past year has tested us all, but it is testament to our values and the resilience of our co-workers that we have managed to come through in a strong financial position while also having made great strides in our business transformation. Their efforts enabled us to continue to meet our customers’ increasing needs at home, at a time when home has been more important than ever.

“We believe it is good business to be a good business – this year has shown that it is by holding fast to our commitments to people and planet that we are most resilient. We are focusing our investments on meeting customers however and wherever they need us, as well as in our mission to be climate positive by 2030.”