14 June 2014
In a rather tough business climate, the IKEA Concept continued to show good strength. Inter IKEA Group continued to make long-term investments in order to secure independence and longevity of the group and the IKEA Concept.
Inter IKEA Group total revenues increased by 7.4%, to €2,856 million in 2013. Net profit increased with €70 million to €516 million. Investments continued, with capital expenditures around €880 million.
- We know that it still is tough times for many people. Rather than being happy about earnings on a certain level I am happy to see that the IKEA Concept developed well. It’s however important that we don’t take anything for granted and keep working hard to improve all our businesses. It’s also good to see how our investments in difficult times are helping businesses to develop and grow, says Søren Hansen, CEO of Inter IKEA Group.
The purpose of Inter IKEA Group is to secure continuous improvement and a long life of the IKEA Concept. As this will require investments in both good and bad times we strive to be financially independent.
Generally we continued to see a tough business climate in Europe. In the second half of 2013 some pick-up in the retail activity could be seen, but it’s still unevenly spread between countries. Demand for IKEA products also improved over the year in Europe. We continue to see strong growth in North America, Asia Pacific and especially in the Middle East.
During 2013 worldwide IKEA retail sales increased by 4.2% (in local currencies). Franchise fees increased by 1.2% (consolidated in Euro).
The investment in real estate development continued as planned, and increased in both the Retail Centre Division and the Property Division. Good performance in the Finance Division contributed to the increased profit.
Inter IKEA Group paid €76.6 million (14%) in corporate income taxes in 2013. In addition our different companies paid significant amounts in local taxes such as property and other business related taxes.
|Numbers in brief, EUR million||2013||2012|
|Co-workers (year average)||1,754||1,644|
Inter IKEA Group is organised in four divisions.
The Franchise Division includes Inter IKEA Systems B.V, worldwide IKEA franchisor and owner of the IKEA Concept, including the IKEA trademarks. The division has the overall responsibility to safeguard the continued success of the IKEA Concept throughout the world. Franchise fee income increased in line with global IKEA retail sales. Franchisees opened ten new IKEA stores during the year, including one relocated store.
The Retail Centre Division – Inter IKEA Centre Group A/S (IICG) - develops and manages retail destinations for the many people, anchored by IKEA stores. Inter IKEA Group is the majority owner of IICG.
The expansion in Europe remained selective due to market limitation. Three retail centres are being built in China – two are scheduled to open in 2014 and one in 2015. Revenue was €164 million in 2013, compared to € 204 million in 2012. The drop is due to the sale of retail centres in Austria during 2012. On a like for like basis, rental income increased by 2.2% during 2013.
The goal of the Property Division – Vastint Holding B.V – is to create long-term value through property investments. The division actively manages developed properties in the Netherlands, Poland, Belgium, Lithuania, Latvia and the UK.
Investment continues and the division has more than 100,000 square meters of offices and hotels under development, and also owns land for future development. Total revenues increased by 33% in 2013, mainly as a result of completed projects and refurbishments.
The Finance Division supports the Inter IKEA Group in maintaining financial independence through long-term investments.
Asset under management was €2.3 billion, compared to €2.1 billion in 2012. In line with an overall positive development of financial markets, the division produced a good return during the year.