The businesses behind IKEA’s UK logistics, warehousing and retail property investment services have reported a mixed performance in revenues.
According to the latest filed accounts for the year ended 31 August 2022, IKEA Distribution Services saw sales decline 7.6% to £119.1m from £128.9m in 2021. Pre-tax profit resulted at £5.5m, down from £5.9m recorded in the previous year.
As for IKEA Properties Investments, total sales rose 5.3% to £92.8m from £88.1m in 2021. Pre-tax profit resulted at £145.6m, down from £175.9m year-on-year.
IKEA said that it will continue to support its retail growth strategy by investing in resources, process improvements and increased technical capabilities to better meet its customers needs.
The company added that the net gain on investment property at fair value was £67.8m, down from £98.9m in 2021. “The fair value gain is less than last year when UK property market had rebounded substantially after Covid-19 turmoil. The increase in rental yields and coupled with strong demand for occupier market for assets has raised the value of our portfolio comparted to last year.”