The IKEA Group reports EUR 3.3 billion net income for the financial year 2014

Conshohocken, PA, 2015-1-30 — /EPR Retail News/ — The IKEA Group net income amounted to EUR 3.3 billion ($3.7 billion US)* for the financial year 2014**. Market conditions continued to improve with strong performance in China and North America, and an upward trend in Europe. There were 716 million visits to the IKEA Group stores and more than 1.5 billion visits to IKEA.com

“FY14 was a good year for IKEA. I am happy to see increased growth in all our sales channels; in existing stores, in the opening of new stores and in e-commerce. We reached some important milestones towards becoming energy independent and saw a 58% increase in the sales value of products that enable people to live a more sustainable life at home. Sustainability is an integral part of our business strategy”, says President and CEO Peter Agnefjäll.

Total sales increased by 5.9% (adjusted for currency impact) from last year to EUR 28.7 billion. Together with the rental income from the shopping centre business, total revenue amounted to EUR 29.3 billion (+2.8%). The IKEA Group gained market share in almost all markets and entered a new country – Croatia. The largest markets in terms of sales were Germany, US, France, Russia and the UK.

“We have an ambitious growth agenda and at the same time we’re determined to have a positive impact on people and the planet. Our size gives us a unique opportunity to make a difference and contribute to positive change in society, for instance by making energy-efficient lighting both affordable and attractive for millions of people”, continues Peter Agnefjäll.

Within its own operations, the IKEA Group produced renewable energy equivalent to 42% of the total energy consumed and aims by the end of 2015 to have invested and committed to invest EUR 1.5 billion in renewable energy projects, mainly offsite wind farms and photovoltaic (PV) panels.

In FY14, EUR 200 million were set aside to a new loyalty programme Tack! and the amount for the One IKEA Bonus Program was increased by EUR 98 million, as a thank you to our co-workers.

“A key factor to our strong performance is that we have a long-term view, and we don’t aim to maximise short-term profits. We strive to continuously create better products at lower prices for our customers and to make substantial investments in our future”, says Peter Agnefjäll.

* Dollar to Euro calculated at $1.12, January 24, 2015.
**FY14 = Financial year 2014 period is September 1, 2013 – August 31, 2014.

IKEA US FY14 Highlights

US Sales and Services:

  • US comparable store sales increased by 4.24% in the period September 2013 – August 2014. This builds on growth of 6.7% in FY13 and 8% in FY12. Total sales including e-commerce were up 5.38%.

Expansion:

  • There were 39 US stores in FY14. New stores opened in Miami, FL, August, 2014 and Merriam, KS, September, 2014. Planned store openings: St Louis, MO, Fall 2015; Las Vegas, NV, Summer 2016; Memphis, TN, Fall 2016.
  • Expansion of existing stores includes Stoughton, MA and Canton, MI

Sustainability:

  • IKEA installed additional solar energy systems to more US locations in FY14, with nearly 90% of our buildings outfitted with solar panels. IKEA announced two new stores; Merriam and Miami would open with solar panels. The IKEA Canton, Centennial, and Stoughton stores had their solar energy systems expanded by at least 25%. The IKEA Perryville and West Hampton distribution centers completed phase two of their solar panel installation.
  • The IKEA Merriam store will also have geothermal technology, a heating and cooling system.
  • In April 2014, IKEA US made its first wind farm investment in the US with the purchase of Hoopeston Wind in Hoopeston, IL. When completed, this project will generate enough safe, pollution-free energy to power approximately 30,000 US homes.
  • In the last 18 months, we have dropped the price of our E26 400 lumen bulbs (dimmable and non-dimmable) from $9.99 to $4.49 in order to make LED affordable for the many people; offering the lowest price on the market.
  • For more information on IKEA US community and environment programs, please read here: http://www.ikea.com/ms/en_US/this-is-ikea/reports-downloads/index.html

People:

  • In June 2014, IKEA Retail US announced that as of January 1, 2015 it will adopt a new minimum wage structure for all hourly IKEA US co-workers based on local living costs. IKEA will utilize the Massachusetts Institute of Technology (MIT) Living Wage Calculator to determine these new wages. As a result of this change, 50% of IKEA US Retail co-workers saw an increase in their hourly pay rate. 22 US IKEA stores will have an hourly minimum wage of $10.10 or above; 33 retail locations will have an increase in their minimum wage because of this change.

For further information, please contact:
Mona Astra Liss, US Corporate PR Director, Mona.Liss@IKEA.com,
610.834.0180, ext. 5852
Martina Smedberg, Media relations IKEA Group, Martina.Smedberg@IKEA.com
+46 42 444 77 76

About IKEA Group
The IKEA vision is to create a better everyday life for the many people. Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. There are currently 315 IKEA Group stores in 27 countries. Additionally, there are 40 IKEA stores run by franchises. There are 40 IKEA stores in the US. In FY 14, IKEA Group had 716 million visitors to the stores and 1.5 billion visitors to IKEA.com. IKEA incorporates sustainability into day-to-day business and supports initiatives that benefit children and the environment. For more information, please visit www.IKEA.com, facebook.com/IKEAUSA, @IKEAUSANews, @IKEAUSA, http://pinterest.com/IKEAUSA/, www.youtube.com/IKEAUSA, www.theshare-space.com

The IKEA Group purchased its 2nd wind farm in the U.S. from Apex Clean Energy: 165-megawatt wind farm in Cameron County, Texas

165 MW Cameron Wind Farm in Texas is Single Largest IKEA Renewable Energy Investment Globally

Conshohocken, PA, 2014-11-18 — /EPR Retail News/ — The IKEA Group announced today that it has purchased its second wind farm in the United States from Apex Clean Energy: a 165-megawatt wind farm in Cameron County, Texas. This represents the single largest renewable energy investment made by the IKEA Group globally to date. The wind farm will contribute significantly to the IKEA Group 2020 goal of producing as much renewable energy as the total energy the company consumes globally. The Cameron Wind farm is expected to be fully operational in late 2015.

Earlier this year IKEA Group announced its first U.S. wind farm purchase located in Hoopeston, Illinois. The Cameron Wind farm will be more than one-and-a-half times the size of the Hoopeston project. Together, the IKEA Hoopeston and Cameron wind farms are expected to generate nearly 1,000 gigawatt hours of electricity per year, which is equivalent to the average annual electricity consumption of around 90,000 American households. 1

“IKEA believes that the climate challenge requires bold commitment and action,” says Rob Olson, IKEA US Acting President and CFO. “We invest in renewable energy to become more sustainable as a business and also because it makes good business sense. And as a home furnishings retailer with sustainability in our roots, we are committed to providing products and solutions that help our customers be more sustainable in their everyday lives.”

IKEA Group has now committed to own and operate 279 wind turbines in nine countries, and will invest a total of $1.9 billion2 in wind and solar power up to the end of 2015. IKEA has also taken steps to further the development of a low-carbon economy by supporting key initiatives including the People’s Climate March, UN Climate Summit, RE100, and the Climate Declaration.

Mark Kenber, CEO of the non-profit organization The Climate Group, said: “IKEA was one of the first major companies to recognize that tackling climate change makes good business sense. IKEA has set commendable renewable energy targets for its own company, and its actions are positively influencing business practices and the energy market. It has played an instrumental role in setting up ‘RE100’, The Climate Group’s global initiative to support businesses in switching to 100% renewable power.”

IKEA renewable energy investments in the U.S. to date now include: 104 wind turbines located on wind farms in Hoopeston and Cameron; 165,000 solar panels installed on 90% of IKEA buildings across the U.S., providing an additional 38 megawatts installed capacity; and geothermal integrated into the heating and cooling systems of two U.S. store locations, in Centennial, Colorado, and Merriam, Kansas.

Cameron Wind is located in a particularly favorable wind area in the south of Texas, which is the leading state in the U.S. for wind energy production. The wind farm will be fully owned by the IKEA Group and will be constructed and managed by renewable energy company Apex Clean Energy. The project will use 55 Acciona 3-megawatt turbines.

“Apex is excited to partner with IKEA once again to bring clean, renewable energy from wind to market in the U.S.,” added Apex President, Mark Goodwin. “Both companies understand that this abundant resource is great for the planet, great for our business and great for our shared future.”

1Calculated using the U.S. Energy Information Administration’s ‘Average Residential Monthly Bill by Census Division and State’: http://www.eia.gov/electricity/sales_revenue_price/html/table5_a.html
2Calculated at 11/17/14 exchange rate (€1=$1.25). IKEA Group made the €1.5 billion commitment in 2009.

About IKEA
The IKEA vision is to create a better everyday life for the many people. Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. The IKEA Group currently has 315 stores in 27 countries. There are 40 IKEA stores in the United States. In FY14, the IKEA Group had 716 million visitors to the stores and 1.5 billion visitors to IKEA.com. IKEA incorporates sustainability into day-to-day business and supports initiatives that benefit children and the environment. For more information, visit IKEA-USA.com, facebook.com/IKEAUSA, @IKEAUSANews, @IKEAUSA, http://pinterest.com/IKEAUSA/, www.youtube.com/IKEAUSA, www.theshare-space.com, www.theshare-space.com/en/Blog

About Apex Clean Energy
Apex Clean Energy is an independent renewable energy company based in Charlottesville, VA. Since its founding in 2009, Apex has become one of the fastest-growing companies in the industry. In 2012, Apex completed the 300 MW Canadian Hills wind energy project. The company currently has 265 MW of new renewable energy facilities under construction and an additional 750 MW contracted and scheduled for completion in 2015. Apex also has a diversified portfolio of wind energy facilities in development around the country and owns several operating solar PV assets. The company’s management team comprises experts from throughout the industry whose collective prior experience includes the development, financing, construction and operation of over $10 billion in wind and solar energy facilities now operating in the United States.

Contact: Mona Astra Liss ~ IKEA US Corporate PR Director
Mona.Liss@IKEA.com ~ 610.834.0180, ext. 5852