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Ingka Group records total revenue of €42.0 billion in FY22

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The company also progressed towards its investment goal of €6.5 billion in renewable energy by 2030, by investing and committing a record €0.9 billion in renewable energy projects

Bengaluru: Ingka Group, the parent company of IKEA India reports a revenue of $42.0 billion in fiscal year ending August 2022, the Swedish furniture giant announced iin its Annual Summary and Sustainability Report FY22.

The company also progressed towards its investment goal of €6.5 billion in renewable energy by 2030, by investing and committing a record €0.9 billion in renewable energy projects.

“We managed to achieve solid performance in a challenging time, all thanks to the efforts of our 170 000+ IKEA colleagues,” said Jesper Brodin, chief executive officer of Ingka Group. “We have invested in creating a better IKEA by becoming more affordable, accessible and sustainable – the latter showing important progress when it comes to reducing our total climate footprint while growing the business.”

Ingka Group represents about 90% of IKEA retail sales with IKEA retail operations in 31 markets. The company owns and operates IKEA sales channels under franchise agreements with Inter IKEA Systems B.V. which has three business areas including IKEA Retail, Ingka Investments, and Ingka Centres.

“FY22 has been a great year for us, and India remains one of the important growth markets for the Ingka group. We are committed to becoming climate positive by 2030, and the performance across the group is moving in the right direction. We are progressing well on our journey towards achieving last-mile EV deliveries by 2025,” said Susanne Pulverer, chief sales officer of IKEA India.

Ingka Group Annual Summary and Sustainability Report FY22 focuses its reporting on four movements. These four movements include better homes, better lives, better planet and better company which form the basis of Ingka Group’s financial and non-financial performance.

Ingka Group Reporting FY22 highlights

Better homes

  • Extended its clean energy services by introducing a solar offer in California, US and heat pumps in Sweden and introduced Sustainable Living Shop across 30 markets, to highlight sustainable products and solutions to more customers
  • Connected with over 37,000 people in 37 countries to conduct the ninth annual Life at Home Report.
  • More than 680 million customers visited IKEA locations and witnessed more than 3.8 billion visits and the IKEA app was downloaded 20.3 million times.
  • Opened first city stores in Sweden, the UK, Canada and India to bring the IKEA range closer to more people and performed 74 million services such as home delivery, product assembly and installation, improving customer convenience.
  • The company expanded affordable financial services to Ireland, giving more people a chance to improve their homes while keeping their budget in balance.
  • Joined forces with retailer H&M to launch Atelier100 in UK, a unique incubator programme aimed at finding and nurturing up and coming creatives in local areas.

Better planet

  • 74.2% of the electricity used by the brand was from renewable sources, an increase from 69.1% in FY21.
  • IKEA continued to explore how to be more circular by testing a range of solutions, including repurposing As-Is areas into circular hubs in 306 stores, enabling customers to buy second-hand and nearly new furniture. 32.5 million products sold in As-Is areas to help customers embrace circularity with 1.8 million customers using spare parts service to repair and extend the life of their IKEA products.
  • Reduced operational waste by 9.5% compared to FY21, recycling rate has remained stable at 75.7%.
  • Reduced production food waste by 57.8% from IKEA stores since FY17, going beyond the target by the end of 2021. The reduction is equivalent to the food used in 20 million meals and 36,000 tonnes of CO2.
  • As of October 1st, 2022, all markets now offer plant-based food at the same or a lower price than the meat-based alternative. This includes veggie balls, plant balls, veggie hot dogs, and plant-based soft ice.

Better lives

  • Responded to the impacts of the war in Ukraine. In total, Ingka Group donated €15.2 million in cash and in-kind donations. This included establishing an emergency community support fund that enabled countries to respond with speed to the needs of local partners working on the ground to assist people fleeing the war in Ukraine.
  • The company supported a total of 1765 refugees in 22 countries through the Skills for Employment refugee integration initiative by the end of FY22, the goal is to support 2,500 refugees in 30 countries during FY23.

Better company

  • Ingka Group reported total revenue of €42.0 billion for the financial year 2022.
  • In FY22 Ingka Group progressed towards its investment goal of €6.5 billion in renewable energy by 2030, by investing and committing a record €0.9 billion in renewable energy projects.
  • Invested in city-centre real estate including a large site on Oxford Street, London. This is part of a wider focus aimed at bringing IKEA closer to customers through new IKEA store formats in city locations.
  • Social housing: Ingka Group committed €100 million of financing in Ireland as part of a unique initiative for the construction of social housing units across the greater Dublin region.
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