Ikea’s worldwide sales have increased by 5.9%, in the fiscal year ended August 2014, as compared to previous one. However its net profit is flat at €3.3bn. The company says that the extra money was spent on employee bonus programmes, and price reductions.
The furniture giant reported strong sale-increases in China, Russia and Hungary. Europe is still the company's main market: 70% of its goods is sold across the continent, reports Newstalk.
China is likely to become an increasingly important market for the company. Company’s representatives believe that urbanisation and a growing number of people who may be considered the country's middle class are going to lead to a increasing demand for home furniture.
According to Newstalk, Chief executive Peter Agnefjall is particularly encouraged to see a strong performance in southern-European countries, as sales picked up in Portugal, Spain and Italy.
Mr Agnefjall also added that he was not worried about deflationary pressures in Europe – explaining that the company already works on adjusting prices to the current situation.
"We have seen a strengthening situation where consumer spending continues to increase, more people visiting the stores and buying more home furniture." – commented Mr Agnefjall, being positive about the company's immediate prospects.