// Ikea to invest £171 million in green energy to become a climate positive business by 2030
// In the year to the end of August, operating profit fell to £1.7 billion
Ikea has reported a fall in full-year profits despite online sales increasing 50 per cent, as it announces new investment plans.
The home & DIY retailer’s holding company Ingka Group said its operating profit fell to €2 billion (£1.7 billion) in the year ending August.
Earlier this week, Ikea said it will invest €200 million (£171 million) in green energy to accelerate its transformation into becoming a climate positive business by 2030.
- Ikea posts full-year sales growth in the UK
- Ikea eyes shopping centre sites as part of expansion plan
Sales increased 5.3 per cent to €39.1 billion (£33.5 billion) while pre-tax profits increased by 19 per cent to €2.5 billion (£2.49 billion) thanks to the rise in income from financial investments.
Meanwhile, profits fell 10 per cent despite homeware retailer’s increased efforts to invest in renewable energy and its online business.
During the same period, Ikea’s online sales surged 50 per cent while in-store sales recorded a 0.7 per cent rise.
“We want to be a part of creating solutions for the challenges our planet is facing, and we are taking bold steps securing our ambition to become climate positive by 2030,” Ingka Group deputy chief executive Juvencio Maezt said.
“It is even clearer that financial performance and sustainability go hand in hand, and for us this is how we will grow, stay relevant and remain profitable, long term,” he said.
“We will continue to test and try new things. At times we will fail and that’s OK, as that’s part of how we constantly develop and improve our business to better meet the needs of our customers for many years to come.”
Over the past decade, Ikea has invested almost €2.5 billion (£2.1 billion) into renewable energy.