Inter IKEA Group announces total revenues of EUR 26.3 billion for financial year 2025 (FY25) compared to EUR 26.5 billion in FY24. Sales volumes are up while gross margin is back to normal levels, following the continued effect of wholesale price decreases in FY24. This planned development supports the IKEA affordability ambitions.
After 20 years at IKEA – including leading the IKEA Franchisor from 2018 and CEO of Inter IKEA Group since 2020 – Jon Abrahamsson Ring is handing over to Jakub Jankowski, currently Managing Director for IKEA Industry. Jakub will step into the role as CEO of Inter IKEA Group on 1 January 2026.
Inter IKEA Group’s overall financial performance is closely connected to the IKEA retail sales performance, which despite ongoing global challenges amounted to EUR 44.6 billion (EUR 45.1 billion in FY24). Sales quantities increased following the continued effect of lowering prices in FY24.
“We view FY25 as a stable year in terms of the financial results,” says Henrik Elm, CFO, Inter IKEA Group. “I’m very proud of how we responded to multiple challenges to deliver a steady result in line with our overall ambitions, and that puts us in a strong position for the coming years.”
Wholesale sales volumes grew by around 6% compared to FY24. This was mainly due to IKEA retailers buying larger quantities to improve product availability for customers. Continued efforts to make the range more sustainable and affordable also helped volumes. Examples of this is the playful asymmetrical ZEBRASÄV pendant lampshade made from 50% recycled plastic, and MITTZON desk which uses strong steel to reduce material, contributing to lower emissions while maintaining quality.
Operating profit was EUR 1.7 billion despite a volatile trading environment, which affected sourcing costs, specifically in the second half of the year. Profitability was lower, in line with expectations, and also following the increased sourcing costs as mentioned above. The higher sourcing costs included the costs for increased tariffs, which have been partly absorbed. With the ever-continuing efforts focused on controlling the cost development, we see opportunities to grow and reduce prices for customers in the foreseeable future.
Comparable operating expenses remained relatively stable in FY25, with an increase as a result of the first-time inclusion of operating expenses for the acquired retail and forest operations in Baltics and additional investments in sustainability and digital capabilities. IKEA Retail Baltics results were in line with expectations and have improved compared to the previous year.
Effective tax rate in FY25 increased to 21.3% following the lower profitability of the main supply company, compared to FY24.
Inter IKEA Group has stabilised its profit base after several turbulent years. “This is welcome news,” says Henrik Elm. “It puts us in a good position to continue lowering prices, allowing more people to create a better life at home through affordable living.”
During FY25, Inter IKEA Group signed an agreement to acquire its first set of forestlands in Latvia, totalling 8,000 hectares to secure a long-term supply of wood from responsibly managed forest. Investments are planned to build a facility for sorting recycled wood for particle board production, in the IKEA Industry site in Kazlu Ruda, Lithuania. The investment will take us one step further towards the goal of 80% recycled wood in the particle board used in IKEA products by 2030.
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