“We think good home decor should be affordable for the many people. So when we design a product, we create the price tag first,” it reads Ikea’s website.
But in recent years, the low-cost giant has raised its prices on several occasions, citing rising commodity prices, a challenging transport situation and energy prices that have drifted away.
But despite the fact that many households faced a difficult financial situation and that Ikea’s sales, in terms of the number of goods sold, stagnated somewhat, the furniture giant is now reporting a billion dollar profit – for the second year in a row.
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Ikea reports a profit of 23 billion – for the second year in a row
More specifically, it is the Ingka Group, which is behind roughly 90 percent of Ikea’s department stores and stores around the world, which for the second year in a row reports an operating profit of just under SEK 23 billion. This is for the fiscal year that extends between September 2022 and August 2023, reports Dagens Industri.
In total, the Swedish furniture giant has thus pulled in a profit of over SEK 45 billion over the past two years.
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Ikea distributes 3.5 billion in bonuses
According to Today’s industry the profit is actually even greater if you take into account that Ikea, in the past year, set aside just over five billion kroner for a special bonus and pension program.
The majority of this money – approximately SEK 3.5 billion – will go to bonuses, which will be distributed among the company’s 165,000 employees. The amount each individual employee receives is determined according to Smålänningenof the result that each department can show.
Read more articles about Ikea here.