Profit is invested into Co-workers, Sustainability and Lowering Prices
BURLINGTON, ON, Jan. 20, 2012 /CNW/ - Mikael Ohlsson, IKEA Group President announced today that IKEA Group sales grew by 6.9% to €24.7 billion in FY11. Net profit increased by 10.3% to €2.97 billion, which he credits to increasing sales and improvements in the company's cost structure. In the last year, IKEA has lowered prices globally by 2.6% while improving the quality of products, in spite of increased raw material costs.
"Today, when nations and people face economic challenges, IKEA is more relevant than ever. We are committed to creating a better everyday life at home by offering beautifully designed and functional home furnishing solutions at affordable prices," says IKEA Group President and CEO Mikael Ohlsson. "In FY11 we continued to grow in both mature and emerging markets, we opened seven new stores and welcomed 4,000 new co-workers. Our profit is re-invested in the company and enables long-term innovation, such as finding better, more sustainable solutions and alternative raw materials."
While the retail industry in Canada suffered as a whole in 2011, IKEA Canada managed to keep a positive outlook and stay profitable. IKEA Canada sales increased by 2% on all comparable stores, while managing to lower prices by 4%. IKEA Canada's strategy is to stimulate the economy by investing in expansion and by providing its customers with the lowest possible prices, making it possible for the many people to shop in their stores.
"At IKEA Canada, we are committed to running our business in the same spirit as our global leadership," says Kerri Molinaro, President, IKEA Canada. "We too invest our profits back into our organization. We have been busy investing in our stores to provide our customers with a better shopping experience, finding new technologies that will allow us to run our buildings in a more sustainable way and working hard to grow and develop our co-workers while attracting new talent."
IKEA puts sustainability at the heart of its business. This includes responsibly sourced materials, smart design and better transport solutions. A fresh example is replacing traditional wooden pallets for newly designed paper pallets that are recyclable. In FY11, IKEA continued to invest in renewable energy sources, such as wind parks and solar panels. Today, with 60 wind turbines and solar PV systems in 40 IKEA units, more than half of the global energy is supplied through renewable sources.
Through the IKEA Foundation and in collaboration with partners such as UNICEF, Save the Children, UNDP and UNHCR as well as other NGOs, IKEA continues to contribute to a better everyday life for the people that have the least. The IKEA Foundation dramatically increased their donations in 2011, with approximately €65 million being donated to fund various projects around the world. Their contributions are projected to assist 100 million people by 2015.
As IKEA grows, so do its co-workers. Known for promoting and developing co-workers, the company embraces diversity and fosters a truly global working culture. Forty percent of top managers are women and as of September 2011, there are nearly 1,000 co-workers gaining invaluable knowledge and experience from working abroad. The Backpacker Journey is an example of how IKEA encourages personal development. The Backpackers spend just over a year, working in two different countries, within different areas of IKEA's business. IKEA is currently on the way to having 157 backpackers who will return from their adventure with new knowledge and experience.
IKEA Group Yearly Summary, called "Welcome inside" and IKEA Group Sustainability Report FY10, are available on www.ikea.com.
*The fiscal year 2011 of IKEA runs from September 1 2010 to August 31 2011
IKEA offers well-designed and functional home furnishings at affordable prices. Founded in Sweden in 1943, the IKEA Group today has 287 stores in 26 countries and 130 000 co-workers committed to our vision to create a better everyday life for the many people. Care for people and the environment is integrated in every step of the business. IKEA continuously supports initiatives that benefit causes such as children or the environment. For more information, please visit www.IKEA.com.
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