The war in Ukraine has also affected the IKEA business and customers. IKEA retail operations in Russia have stopped and Inter IKEA Group continues to scale down its presence with full consideration for the many co-workers, partners and suppliers who have made IKEA successful there for several years.
Against this background, retail sales developed positively at the start of the year while increasing purchase and transport costs were absorbed. In the second half of the year, sales in quantities were negatively affected by the war in Ukraine and the effects of the energy crisis and inflation.
An uplift in store sales is visible, while online sales remain at a high level. Although there are still challenges to maintain the supply of home furnishing products to the retailers, the availability of products for our customers has improved.
Whereas we see growth in sales value, sales in volumes decreased and number of products sold has not grown.
In FY22, raw material and commodity prices also continued to rise, as well as costs related to transportation and logistics. In total, this created additional costs for the whole IKEA value chain. These costs were only partly compensated by higher revenues.
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Inter IKEA Group recorded total revenues of EUR 27.6 billion (EUR 25.6 billion in FY21), including wholesale sales to IKEA retailers, franchise fees and retail sales from the IKEA Delft store. Net profit is EUR 0.7 billion (EUR 1.4 billion in FY21).