Swedish furniture and home furnishings retailer Ikea’s Indian unit net loss widened to Rs 902.8 crore in FY22 from Rs 809.8 crore in the preceding year, according to financial data accessed by business intelligence platform Tofler. Ikea India Pvt Ltd 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. Ikea India’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, excluding interest, depreciation and amortization, was also up 45.62 per cent to Rs 1,590.8 crore.
During the FY22, the company’s expansion plan and operations were impacted due to the global Covid-19 pandemic, said Ikea India in its financial report.
“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 is operating 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”.
While responding to a query, 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.
Ikea opened its first store in India in Hyderabad in 2018.
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