Inter IKEA Holding (IKEA) Q4 2024 earnings summary

Executive summary

• FY24 operating income was EUR 26.5 billion, down 8.7% year-over-year, mainly due to substantial wholesale price reductions to support affordability, resulting in lower sales and franchise fees but increased sales volumes in H2.

• Net profit rose to EUR 2.2 billion from EUR 1.6 billion in FY23, driven by improved operating income and positive financial results.

• All treasury services and working capital funding with Interogo Holding AG ceased, with a EUR 4.8 billion cash inflow from settlement in May 2024.

• Agreement reached to acquire retail and real estate operations in the Baltics, pending regulatory approval.

Financial highlights

• Total operating income: EUR 26.5 billion (down 8.7% year-over-year).

• Net profit: EUR 2.2 billion (up from EUR 1.6 billion in FY23).

• Operating expenses: EUR 24.2 billion, with cost of raw materials and consumables down 11.4% year-over-year.

• Group equity increased to EUR 19.2 billion (from EUR 17.8 billion), equity ratio improved to 86%.

• Cash and cash equivalents at year-end: EUR 4.2 billion (up from EUR 169 million in FY23).

Outlook and guidance

• FY25 expected to see continued price reductions for retailers, supporting affordability but limiting sales value growth.

• Anticipates further moderate decrease in raw material costs and positive treasury results; profitability expected to continue.

• Planned investments in research and development to be financed from own funds.

• Closing of Baltic acquisition expected within four to six months after August 2024.