Inter IKEA Group is taking steps to strengthen its long-term commitment to becoming more affordable and accessible. By sharpening its goals and priorities on what matters most to customers: a relevant product range, low prices, and strong customer experience, the organisation is now simplifying how it works, while continuing to invest for the future.
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 several years of rising costs for the sourcing and supplying of IKEA products, FY24 marked a trend-break. That year, Inter IKEA Group noted significant price decreases for raw materials and transportation. This trend continued in the first half of FY25. However, in the second half, trade uncertainties resulted in increases on commodity markets and higher sourcing costs (including tariffs).
On average, purchase price levels in FY25 evened out enabling Inter IKEA Group to maintain wholesale prices to IKEA retailers at the same level as FY24. This secured stability in the franchise system and affordability for our customers. This has kept total revenues fairly unchanged, compared to FY24 with the continued effect of the lower prices being offset by higher sales volumes.
Operating expenses have increased compared to the previous year due to to the inclusion of the operating expenses of the acquired retail and forestry operations in the Baltics. We have also spent more on sustainability and digital capabilities. Furthermore, high inflation in certain countries continues to add to our operating expenses. Substantial marketing investments were made by Inter IKEA Group during FY24 to support IKEA retailers in communicating these lower prices in their markets. This resulted in additional operational costs which have not recurred in FY25.
Financial income and expense reduced significantly in FY25 due to lower interest income on outstanding cash balances.
Net income amounts to EUR 1.5 billion, which is a resumption of normal levels.
The reduction versus FY24 is primarily driven by lower operating income and lower interest income. The Inter IKEA Group consolidated income statement shows a simplified overview of this year’s financial performance.
| In millions of EUR | FY25 | FY24 |
|---|---|---|
| Sales of goods | 24,860 | 25,061 |
| Franchise fees | 1,320 | 1,348 |
| Other income | 126 | 129 |
| Total revenues | 26,306 | 26,538 |
| Cost of goods sold | 21,328 | 21,048 |
| Gross profit | 4,978 | 5,490 |
| Operational cost | 3,253 | 3,151 |
| Total operating income | 1,725 | 2,339 |
| Financial income and expense | 227 | 326 |
| Result before tax | 1,952 | 2,665 |
| Income taxes | -415 | -466 |
| Results from associates | -41 | - |
| Net income | 1,496 | 2,199 |
Sales of goods is wholesale sales of IKEA products to IKEA franchisees. Retail sales from IKEA Delft and IKEA Retail Baltics, owned by Inter IKEA Group, are also included in this line item. Sales of goods are down following the continued effect of price decreases on the goods sold to the franchisees.
In a franchise setup, one company pays another franchise fees for the right to use its intellectual property. The IKEA franchise offer is the total package of products and services, intellectual property licenses (including the IKEA trademarks and IKEA Concept) and requirements that Inter IKEA Systems B.V. provides to franchisees. IKEA franchisees pay Inter IKEA Group an annual fee of 3% over their net sales. In return, they are authorised to operate IKEA customer meeting points for marketing and selling the IKEA product range. As retail sales decreased in FY25, franchise fee income reduced accordingly.
Other income mainly consists of income from marketing materials and communication created for, and sold to, IKEA franchisees.
Cost of goods sold is the total accumulated costs to source, manufacture and distribute products. The cost of goods sold relates both to wholesale and retail sales.
Inter IKEA Group manufactures about 10% of the IKEA home furnishing product range and sources the remaining from over 800 external suppliers.
Raw material and commodity prices, and costs related to transportation and logistics, have shown volatile patterns following the uncertainties around the announced US trade tariffs. After a downward trend at the start of the financial year, price increases became evident during the second half of the year. Although the situation stabilised recently, uncertainties remain.
gross profit in FY25
gross profit in FY24
Operational cost includes co-worker costs, utilities, rent and other costs related to day-to-day operations.
Disregarding one-time costs in FY24 and FY25, operational cost has increased considerably due to inclusion of the operating expenses of the retail and forestry operations and higher spend on sustainability and digital capabilities. Furthermore, high inflation in certain countries continues to add to our operating expenses.
During FY25, our co-worker base (measured in average FTE) increased from 23,892 to 25,971 primarily due to the acquisition of IKEA Retail Baltics.
Staff and travel costs
49
Bought services
7
Depreciation/amortisation
16
Other operating expenses
28
FY25 operational cost per category
Financial income and expense are revenue and costs regarding loans, investments, cash deposits and positions in foreign currencies.
The net financial income and expense have decreased considerably compared to the previous year. In FY24, interest rates were higher, resulting in more interest income earned on outstanding cash balances. In FY25, interest rates fell significantly resulting in lower interest income.
In FY25, the Inter IKEA Group tax charge was EUR 415 million – equal to 21.3% of pre-tax income – compared to EUR 466 million (17.5%) in FY24. The effective tax rate increased by 3.8%. This is primarily due to a higher profit reported by Inter IKEA Systems B.V. in the Netherlands as the previous year included substantial one-time investments to support IKEA retailers in their marketing efforts and lower profitability in our main supply company IKEA Supply AG.
Inter IKEA Group’s total tax contribution amounted to EUR 2.1 billion and mainly consisted of payments of corporate income tax, custom duties, VAT and payroll taxes.
To find more information on the taxes paid by Inter IKEA Group companies including country-by-country reporting for the financial year 2025 (FY25), please visit Our approach to tax.
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 2025. An unqualified auditor’s report dated 6 November 2025 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.
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