Design for success: Ikea forecasts record-breaking profits for 2023

IKEA is steaming ahead with its major expansion plans in the Spanish market. The Swedish home and furniture giant expects to close its 2023 books, which they do in August, with a five per cent increase in revenue.

If successful, this achievement would push Ikea’s earnings above €1.9 billion, a record for the company. This optimistic projection comes directly from the Ikea’s annual financial report submitted to the Spanish Commercial Registry and announced on Friday, June 23.

The report provides a summary of their activities in 2022, a year that also saw Ikea soar to new heights, raking in €1.82 billion, an impressive 8.2 per cent increase on the previous year.

In another notable change, their digital sales channel accounted for 22 per cent of their overall business, substantially more than in previous years.

This past year was pivotal for Ikea, confirming a robust recovery from the pandemic and laying the groundwork for their ambitious growth plans in Spain, which they have been announcing over the past few months and which are also recorded in the report.

However, Ikea is also facing a tax penalty of €10.4 million, after a tax inspection into profits during the years of 2015-2018. The tax inspection cited concerns about transfers between Ikea’s Swedish and Spanish branches.