Ikea Ireland’s financial performance has seen a significant surge, with an 82% increase in pre-tax profits to €23.49 million. This growth coincides with a 16.5% increase in sales, reaching €252.42 million for the period ending in August 2023. The company’s focus on expansion is evident in its plans to establish additional Plan & Order Points across the country, following the success of three new locations in Drogheda, Cork, and Portlaoise.Ikea Ireland’s financial performance has seen a significant surge, with an 82% increase in pre-tax profits to €23.49 million. This growth coincides with a 16.5% increase in sales, reaching €252.42 million for the period ending in August 2023. The company’s focus on expansion is evident in its plans to establish additional Plan & Order Points across the country, following the success of three new locations in Drogheda, Cork, and Portlaoise. Furthermore, Ikea has expanded its collection point network from two in 2021 to eleven currently. These Plan & Order Points provide customers with tailored design advice from experts, offering a more convenient way to navigate complex purchases. The company’s future plans include continued investment in various aspects of its operations to enhance customer convenience and sustainability. Despite global challenges such as the war in Ukraine and inflationary pressures, Ikea Ireland remains financially resilient. Its healthy financial results, including the outpacing of market growth and increased market share, demonstrate its stability and strength. The company’s expansion journey and commitment to offering innovative shopping options position it for continued success in Ireland.
The Irish arm of Swedish furniture giant Ikea is targeting further expansion here as pre-tax profits rose 82% to €23.49 million last year.
New accounts filed by Ikea Ireland Ltd show pre-tax profits at the retailer soared as sales rose 16.5% from €216.7 million to €252.42 million in the 12 months to the end of August last year .
The top year for the home accessories retailer resulted in a dividend increase from €3 million to €11 million.
Regarding the company’s expansion plans, the directors state that “following the success of the two Plan & Order Points that opened last year, we are committed to opening many more across the country in the coming years”.
They state: “During the year, Ikea opened Plan & Order Points in Drogheda, Cork and Portlaoise, with plans to open in more locations in 2024.”
They state that the number of Ikea collection points has also grown radically, from just two in 2021 to eleven today.
The directors say the Plan & Order points are “smaller stores, offering customers free bespoke design advice with experienced Ikea kitchen and bedroom storage experts, enabling complex purchases with a shorter journey to Ikea”.
Speaking about the company’s future developments, the directors say: “We are on an expansion journey in Ireland. We plan to invest in new and existing ways to shop and meet people, including new Plan & Order Points, a new distribution center , the development of the existing store and new delivery options, making it easier and more sustainable to shop at Ikea than ever before.”
Ikea opened its first distribution centre in Rathcoole, Ireland in April, employing more than 200 people. The company’s directors say the state-of-the-art new building will “enable faster delivery of Ikea products to customers in Ireland, with greater availability and shorter delivery times.” by more than half”.
The increase in profits and sales coincided with the company’s flagship store in Ballymun, Dublin, welcoming its 40 millionth visitor last year.
The directors said that “our healthy financial results,” including 16.5% sales growth that outpaced the home furnishings market and gained market share, “represent our financial stability and resilience in the midst of significant change.”
They state that the impact of the war in Ukraine and subsequent high inflationary pressures “had a significant impact on the global supply chain and on local energy and other costs and that, as a result, both our operating costs and cost of goods sold increased significantly in compared to last year”.
The company’s operating profit increased by 67% from €13.38 million to €22.44 million.
After taking into account net interest payments of €525,797 and receiving a dividend of €1 million, the company posted a pre-tax profit of €23.49 million.
The company made a profit after tax of €20.49 million, after corporate tax of €3 million.
The number of employees at Ikea Ireland fell by 34 last year from 766 to 732, while staff costs rose from €21.76 million to €23.99 million.
The total salary for two direct employees fell marginally last year from €273,522 to €271,466.
Last year’s profit takes into account non-cash depreciation costs of €2.54 million, while operating lease costs rose from €976,606 to €2.86 million.
Shareholder funds totaled €47.14 million, including accumulated profits of €42.14 million. The cash funds totaled €945,957.
