|In millions of EUR
|31 Aug 2023
|31 Aug 2022
|Intangible fixed assets
|Tangible fixed assets
|Financial fixed assets
|Total fixed assets
|Cash and cash equivalents
|Total current assets
|Equity and liabilities
The majority of the Inter IKEA Group’s balance sheet positions have not changed significantly compared to 31 August 2022. Equity and non-current liabilities were the exceptions, where we see the effects of the ownership changes reflected. In FY23, the ownership of Inter IKEA Group was transferred from Interogo Foundation to Inter IKEA Foundation. Subsequently, Inter IKEA Foundation performed a capital contribution to Inter IKEA Group, consisting of the outstanding loan receivable, with the remaining amount received in cash.
The consolidated balance sheet shows an overview of Inter IKEA Group’s assets, equity and what is due to suppliers, partners and other organisations.
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 assetsTangible 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 35 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.
In March 2023, Inter IKEA Group concluded the sales of all IKEA Industry production units in Russia, and with that Inter IKEA Group no longer owns any assets in the country.
Inventories and receivablesInventories mostly consist of IKEA products located in, or in transit to, warehouses and IKEA stores. Inventory levels were particularly low during FY20 and FY21 as transport constraints in combination with high customer demand posed a challenge in replenishing inventory to a desired level. During FY22, our inventory levels increased due to continued supply chain challenges as well as efforts to secure better product availability for our customers.
During FY23, purchasing tactics were adapted to address these high inventory levels, which was also possible due to lower lead times, as global supply chains normalised. This resulted in a gradual lowering of inventory levels and related transportation. Logistics costs also started to decline. At the end of FY23, inventories have come down to a more appropriate level for our business.
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 liabilitiesEquity is the capital invested by shareholders of Inter IKEA Group, plus accumulated profits over time. Equity increased with EUR 7.9 billion during FY23, improving our equity ratio from 40% in FY22 to 77% in FY23.
During the year, a dividend of EUR 1.9 billion was distributed to Interogo Holding AG, our co-shareholder at that time. After the ownership changes, a capital contribution of EUR 8.3 billion was received from our current shareholder Inter IKEA Foundation. The FY23 net profit of EUR 1.6 billion will be added to equity.
Provisions are money set aside for pension commitments, deferred taxes and claims.
Liabilities are money owed to others. In prior years, Inter IKEA Group non-current liabilities primarily consisted of a loan from Interogo Holding AG. Upon the ownership changes, this loan was transferred through a capital contribution, almost reducing our non-current liabilities to nil. Current liabilities are short-term loans, money due to suppliers and tax payables.
equity ratio in FY22
equity ratio in FY21