FY21 financial results

The global pandemic affected our operating income in FY21. The biggest cause was the steep increase in transport and raw material prices in the second half of the financial year. The full impact of this can be seen in the increased costs of goods sold which reflects the cost of sourcing, handling and distribution of IKEA products.

After financial income and expense, and income taxes, net income of EUR 1,433 million was substantially lower compared to FY20. The Inter IKEA Group consolidated income statement shows a simplified overview of this year’s financial performance.

Consolidated income statement
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 2021. An unqualified auditor’s report dated 28 October 2021 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.

Sales of goods

Sales of goods refers to wholesale sales of IKEA products to IKEA franchisees. Inter IKEA Group also owns and operates one IKEA store in Delft, the Netherlands. IKEA Delft’s retail sales are also included in this line item.

As IKEA franchisees’ retail sales increased in FY21, Inter IKEA Group wholesale sales went up as well. However, the global transport crisis challenged us to keep IKEA stores well-supplied throughout the year.

Franchise fees


Other income

Other income mainly consists of income from selling the IKEA catalogue (final edition) and other marketing materials created for IKEA franchisees.

Cost of goods sold

Cost of goods sold describes the total accumulated costs to manufacture and distribute products. The cost of goods sold relates to both wholesale and Delft store sales. Inter IKEA Group manufactures about 11% of the IKEA product range and sources the remaining 89% from nearly 1,000 external suppliers. This includes both home furnishing and food products.

Raw material prices increased dramatically in the second half of FY21 following an unfavourable combination of scarcity and high demand. This resulted in higher purchasing costs in FY21.

In addition, transport costs went up due to the limited availability of containers and carriers as a result of the pandemic. To support low prices to customers in accordance with our affordability ambition, Inter IKEA Group did not increase wholesale prices to the IKEA franchisees, which led to a lower gross margin.

Operational cost

Operational cost includes co-worker costs, utilities, rent and other costs related to day-to-day operations. This total went up slightly in FY21 to EUR 2,622 million.

Costs rose for recruiting additional staff to handle a complex transport and shipping environment in efforts to secure the availability of products in IKEA markets. Further additional costs came from building up and securing capabilities to address the necessary strategic and transformational changes to improve the whole IKEA value chain.

Investments were also made to improve the online IKEA sales experience and the performance of our retail platforms. The increases are partly offset by improved efficiency of our operations and lower travel costs due to global travel restrictions.


Financial income and expense

Financial income and expense are revenue and costs regarding loans, investments and positions in foreign currencies. Favourable currency developments partly offset the interest expenses.


In FY21 the Inter IKEA Group tax charge was EUR 272 million – equal to 16.0% of pre-tax income, compared to 14.6% in FY20. This resulted from lower supply chain profitability due to increased raw material prices and transport costs.

Inter IKEA Group’s total tax contribution amounted to EUR 1,916 million and mainly consisted of corporate income tax, custom duties, VAT and payroll taxes.