Financial income and expense
Financial income and expense are revenue and costs regarding loans, investments, cash deposits and positions in foreign currencies. The net financial income and expense has changed considerably compared to previous years.
In FY23, a shareholder restructuring took place through which ownership of Inter IKEA Group was transferred from Interogo Foundation and Interogo Holding AG to Inter IKEA Foundation. During this change, our outstanding long-term loan payable was transferred through a capital contribution, which almost reduced our non-current liabilities to almost nil. As a result, Inter IKEA Group no longer pays interest for this loan, which was an annual expense of EUR 324 million.
Additionally in FY23, interest expenses relating to working capital funding were driven upwards due to high interest rates. In FY24, positive working capital development reduced the funding need and instead, interest income was gained on outstanding cash balances.
Taxation
In FY24, the Inter IKEA Group tax charge was EUR 466 million – equal to 17.5% of pre-tax income – compared to EUR 307 million (15.8%) in FY23.
Inter IKEA Group’s total tax contribution amounted to EUR 2,140 million and mainly consisted of payments of corporate income tax, custom duties, VAT and payroll taxes. Read more in the Inter IKEA Group Tax Report FY24.