Inter Ikea, the owner of the Swedish furniture brand, has reported a rise in profit for 2024 despite a drop in sales following its decision to cut prices across a range of products.
Operating profit for the group, which supplies the stores to which it franchises, edged up 4% from £1.8bn (€2.2bn) to £1.9bn (€2.3bn) in the year to 31 August., Reuters reported.
It came as sales fell 9% to £21.9bn (€26.5bn).
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Inter Ikea’s chief financial officer Henrik Elm said the business lowered its prices by an average of 15% over the year, allowing Ikea retailers to bring down its prices by an average of 10%.
Elm said the company aims to cut its prices further this year, but refused to give an estimate.
The price reductions form part of Inter Ikea’s attempt to boost the brand’s affordability after it was forced to hike prices in 2021 following a steep rise in raw material costs.
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