Ikea financial info revealed for first time; 2010 sales rise 7.7% to $31.7 billion
October 1, 2010,
Ikea has publicly disclosed financial information for the first time. The family-owned, unlisted Swedish retailer said its net profit rose 11.3% to $3.4 billion in the 2009 financial year compared with the previous year. Sales for the fiscal year ended Aug. 31, 2010 rose 7.7% to $31.7 billion.
James Lamont and Andrew Ward, writing for the U.K.'s Financial Times, said the announcement was made by the retailer in an effort to rid itself of a "reputation of being highly secretive."
Mikael Ohlsson, Ikea's chief executive, has made greater transparency for employees and customers one of his top priorities. The decision to do so comes a year after Ikea's business culture came under attack from a former employee. Johan Stenebo, a former senior manager, published a tell-all book called The Truth About Ikea, which alleged the company was run by a sect and that it ran an internal network of spies.
Ikea wants to expand in China, Russia and India. Ikea sources $686 million worth of supplies in India and could double this within three years, Ohlsson said.
Mr Ohlsson said the group will publish a summary of its financial results on a yearly basis as well as a document called "Welcome Inside," explaining more about the company to its employees, suppliers and customers.
Read Lamont and Ward's story here: http://www.cnn.com/2010/BUSINESS/10/01/ikea.sweden.profits.ft/
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