PH179577

Inter IKEA Group balance sheet

Most Inter IKEA Group balance sheet positions have not changed significantly compared to 31 August 2021. Inventories and receivables were the exceptions. Here we see the increased cost of raw materials and transport reflected in the value of inventories and receivables from franchisees. Our equity ratio went down from 47% to 40% due to increased working capital.

The consolidated balance sheet shows an overview of Inter IKEA Group’s assets, equity and what is due to suppliers, partners and other organisations.

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Consolidated balance sheet.

Intangible fixed assets 

In general terms, fixed assets are business property intended for long-term use. Intangible fixed assets are assets that lack physical form, such as patents, trademarks, copyrights and other intellectual property. 

Most Inter IKEA Group intangible fixed assets are trademark rights and other intellectual property rights. Inter IKEA Group purchased these rights in 2012. The purchase price of EUR 11.8 billion is spread over 45 years since a positive return is expected for a long period.

Tangible fixed assets

Tangible fixed assets are things like real estate and equipment that you can physically touch and feel. Inter IKEA Group tangible fixed assets are mainly factories and distribution centres. 
Inter IKEA Group owns several offices and distribution centres, the IKEA Delft store, the IKEA Hotell, the IKEA Museum and around 42 factories. Most of the factories are in Europe. The majority produce IKEA furniture, while two manufacture components, such as screws and wooden dowels used to assemble IKEA furniture. 

The process of finding new ownership for the factories in Russia has started and is expected to be finalised in FY23. 

Inventories and receivables

Inventories mostly consist of IKEA products in warehouses and in transit. Inventory levels went up from unusually low levels in FY21 following Covid-related supply chain disruptions. Significant efforts were made in FY22 to replenish inventory to the level we need in order to better serve our customers.

Receivables is money owed to the Inter IKEA Group by business partners. Most receivables relate to franchise fees and products sold and invoiced to IKEA franchisees. 

Group equity, provisions and liabilities

Equity is the capital invested by shareholders of Inter IKEA Group, plus accumulated profits over time. Equity decreased by EUR 268 million during FY22.

A dividend of EUR 850 million will be distributed to Interogo Holding AG. This will be funded from the EUR 710 million profit achieved during FY22, with the remaining EUR 140 million to be withdrawn from equity.

Provisions are money set aside for pension commitments, deferred taxes and claims. 
Liabilities are money owed to others. Most Inter IKEA Group non-current liabilities, which are due over a long period of time, consist of a loan from Interogo Holding AG. Current liabilities are short-term loans, money due to suppliers and the current portion of long-term loans from Interogo Holding AG. Due to the build-up of inventory during FY22, our trade payables as well as the short-term loans payable to Interogo Holding AG have increased.
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Note to reader: the included abbreviated financial statements are an abridged version of the consolidated financial statements of Inter IKEA Holding B.V. as included in the Annual Report for the financial year 2022. An unqualified auditor’s report dated 31 October 2022 was issued on these financial statements. Inter IKEA Holding B.V.’s consolidated financial statements, from which these abbreviated financial statements have been derived, have been prepared in accordance with Part 9 of Book 2 of the Dutch Civil Code.