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Ikea's record profit

posted 23 Jan 2013, 06:40 by Mpelembe   [ updated 23 Jan 2013, 06:40 ]

Reuters Business  Report - 27 billion euros is today's daily digit in Europe - record revenue at the Swedish furniture group Ikea.

It was up 9.5 percent for the year to last August.

Net profit was up 8 percent to 3.2 billion euros, another record. Still, operating profit shrank by 3 percent largely thanks to a strategy of not passing on higher raw material costs to the customer.

The privately-held firm is known around the world for its low-price, self-assembly furniture.

It puts its success down to consumers needing cheaper goods during economic downturns.

It gained share in all markets while like-for-like sales growth in Europe, where it does most of its business, remained constant.

Last year Ikea announced plans to boost expansion and open 25 news stores a year by 2015 - with an aim to double sales by 2020.

New horizons include SerbiaCroatia and South Korea - along with India - where a key investment board has just backed its bid the set up stores.