Swedish furniture and home furnishing retailer Ikea’s Indian unit’s net loss widened to Rs 902.8 crore in FY22 from Rs 809.8 crore in the previous year, according to financial data accessed by business intelligence platform Toffler.
Net sales/revenue from operations of Ikea India Pvt Ltd grew by 77.07 per cent to Rs 1,076.1 crore in FY22. It was Rs 607.7 crore during the financial year ended March 2021.
Its revenue from ‘other income’ doubled to Rs 48.2 crore in FY22.
Ikea India’s total income also grew 73.1 per cent to Rs 1,125.5 crore in FY22 as against Rs 650.2 crore in the year-ago period.
Total operating expenses excluding interest, depreciation and amortization also increased by 45.62 per cent to Rs 1,590.8 crore.
During FY 2012, the company’s expansion plans and operations were affected due to the global COVID-19 pandemic, Ikea India said in its financial report.
“However, the company not only managed its operations effectively but also extended its support to the society through its various partners to help those in need and reduce the spread of the pandemic. The company also protected its co-workers. while managing its operations,” it said.
It added: “The company has continued to perform well, and management is also optimistic about its future prospects.” During FY22, the company continued to work on its plans towards the positioning, growth and profitability of Ikea’s omni-channel business in India.
Ikea operates three large format stores in Hyderabad, Navi Mumbai and Bangalore. Apart from this, it also sells online in Mumbai, Pune, Hyderabad, Gujarat and Bengaluru.
In FY22, it was also “focusing on cities in Hyderabad, Mumbai, Pune, Bangalore and Delhi NCR”.
Responding to a query, a company spokesperson said that India is an important market for Ikea.
“We are in India for the long term and are still in the early years of operations, where we continue to invest in omni-channel expansion in our priority markets. We almost doubled sales in India over the last year And we will continue to focus on reaching out to many people in India with our accessible, affordable, sustainable products and solutions that are relevant to life at home,” the spokesperson said.
Ikea opened its first store in India in 2018 in Hyderabad.
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