Swedish furniture and home furnishings retailer Ikea’s Indian unit suffered a net loss of Rs 902 crore in FY22, widening it furthermore from Rs 809.8 crore in the preceding year, according to financial data accessed by business intelligence platform, Tofler, reported PTI.
Ikea India Pvt Ltd also reported a that the net sales/revenue from operations was up 77.07 per cent to Rs 1,076.1 crore in FY22. It was at Rs 607.7 crore during the financial year that ended in March 2021. Its revenue from ‘other income’ was up over two folds to Rs 48.2 crore in FY22.
Company’s total income also went up by 73.1 per cent to Rs 1,125.5 crore in FY22, in comparison to Rs 650.2 crore of a year-ago period. Total operating expenditure was also up 45.62 per cent to Rs 1,590.8 crore. This excluded interest, depreciation and amortization.
In its financial report Ikea India said that In FY22, the company’s expansion plan and operations were impacted due to the global Covid-19 pandemic.
“However, the company not only managed its operations in an effective way but also extended its support to society through its various partners for helping the needy people and for minimising the spread of the pandemic. The company also ensured the safety of its co-workers while managing its operations,” it said.
It further added: “The company has continued to perform reasonably well, and the management is optimistic about its future prospects too.” During FY22, the company continued to work on its plans towards positioning, growth and profitability of Ikea’s omni-channel business in India.
Ikea has three big format stores in Hyderabad, Navi Mumbai, and Bengaluru. Besides, it also sells online in Mumbai, Pune, Hyderabad, Gujarat and Bengaluru. In FY22, it was also “focussing on the cities of Hyderabad, Mumbai, Pune, Bangalore and Delhi NCR”.
A company spokesperson said India is an important market for Ikea. “We are in India for the long term and still in the initial years of operations, where we continue to invest in omni-channel expansion in our priority markets.
We have almost doubled sales in India over the last year and we will continue to focus on reaching the many people in with our accessible, affordable, sustainable products and solutions that are relevant to life at home in India,” the spokesperson said.
In 2018 Ikea started its first store in India in Hyderabad.