Ikea Ireland Expands with Record ProfitsIkea Ireland Expands with Record Profits Ikea Ireland’s pre-tax profits surged by 82% to €23.49 million last year, driven by a 16.5% increase in sales. The Swedish furniture giant’s expansion plans include opening more “Plan & Order Points” across the country. Success and Expansion Ikea’s success in Ireland has led to the opening of three Plan & Order Points in Drogheda, Cork, and Portlaoise, with more planned for 2024. These smaller stores offer personalized design consultations and enable complex purchases. New Distribution Center and Delivery Options To support its growth, Ikea opened a new distribution center in Rathcoole, Ireland, employing over 200 people. The state-of-the-art facility enhances product availability and reduces delivery times by over half. The company is also exploring new delivery options to improve convenience for customers. Financial Performance Ikea Ireland’s operating profit increased by 67%, and after tax, the company reported a profit of €20.49 million. Despite inflationary pressures and supply chain disruptions due to the war in Ukraine, Ikea maintained its financial stability. Sales Outperform Market Ikea’s sales growth of 16.5% surpassed the home furnishings market, indicating the company’s strong market share. The flagship store in Ballymun, Dublin, welcomed its 40 millionth visitor last year. Future Plans Ikea Ireland plans to continue investing in new ways to meet customer needs. The company will expand its Plan & Order Points, develop existing stores, and introduce new delivery options to enhance the shopping experience and promote sustainability.
The Irish arm of Swedish furniture giant Ikea is targeting further expansion here as pre-tax profits rose 82% to €23.49 million last year.
New accounts filed by Ikea Ireland Ltd show pre-tax profits at the retailer soared as sales rose 16.5% from €216.7 million to €252.42 million in the 12 months to the end of August last year .
The top year for the home accessories retailer resulted in a dividend increase from €3 million to €11 million.
Regarding the company’s expansion plans, the directors state that “following the success of the two Plan & Order Points that opened last year, we are committed to opening many more across the country in the coming years”.
They state: “During the year, Ikea opened Plan & Order Points in Drogheda, Cork and Portlaoise, with plans to open in more locations in 2024.”
They state that the number of Ikea collection points has also grown radically, from just two in 2021 to eleven today.
The directors say the Plan & Order points are “smaller stores, offering customers free bespoke design advice with experienced Ikea kitchen and bedroom storage experts, enabling complex purchases with a shorter journey to Ikea”.
Speaking about the company’s future developments, the directors say: “We are on an expansion journey in Ireland. We plan to invest in new and existing ways to shop and meet people, including new Plan & Order Points, a new distribution center , the development of the existing store and new delivery options, making it easier and more sustainable to shop at Ikea than ever before.”
Ikea opened its first distribution centre in Rathcoole, Ireland in April, employing more than 200 people. The company’s directors say the state-of-the-art new building will “enable faster delivery of Ikea products to customers in Ireland, with greater availability and shorter delivery times.” by more than half”.
The increase in profits and sales coincided with the company’s flagship store in Ballymun, Dublin, welcoming its 40 millionth visitor last year.
The directors said that “our healthy financial results,” including 16.5% sales growth that outpaced the home furnishings market and gained market share, “represent our financial stability and resilience in the midst of significant change.”
They state that the impact of the war in Ukraine and subsequent high inflationary pressures “had a significant impact on the global supply chain and on local energy and other costs and that, as a result, both our operating costs and cost of goods sold increased significantly in compared to last year”.
The company’s operating profit increased by 67% from €13.38 million to €22.44 million.
After taking into account net interest payments of €525,797 and receiving a dividend of €1 million, the company posted a pre-tax profit of €23.49 million.
The company made a profit after tax of €20.49 million, after corporate tax of €3 million.
The number of employees at Ikea Ireland fell by 34 last year from 766 to 732, while staff costs rose from €21.76 million to €23.99 million.
The total salary for two direct employees fell marginally last year from €273,522 to €271,466.
Last year’s profit takes into account non-cash depreciation costs of €2.54 million, while operating lease costs rose from €976,606 to €2.86 million.
Shareholder funds totaled €47.14 million, including accumulated profits of €42.14 million. The cash funds totaled €945,957.
