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.
Consolidated income statement
