Ikea profits take a hit due to supply chain disruptions

Ikea
// Ikea profits drop in challenging year
// The homewares retailer expects sales to rise this year despite warnings

Ikea has seen its profits drop after a year of store closures led to a number of challenges.

Inter Ikea, the worldwide franchiser for the retailer, said net profit fell 17 per cent to €1.43 billion for the 12 months to August.

Chief financial officer Martin van Dam has warned of inflation and supply-chain challenges for the current financial year.


READ MORE: Ikea hands out Covid bonuses to worldwide staff


He added that supply-chain disruption creates by its definition “a disappointed consumer”.

The homewares retailer expects sales to rise this year despite the warnings.

Inter Ikea had €250 million of additional costs due to labour and transport shortages last year.

Those costs are expected to rise further this financial year.

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