Ikea recorded a drastic decline in net profit in the 2023 fiscal year, which was nearly halved to 806 million euros, marking the second worst value of the past decade.

Ingka Group, the main operator of 90 percent of Ikea stores, invested 2.1 billion euros to keep its product prices stable. This strategic decision led to a 5 percent decline in sales to 41.9 billion euros.

We have consciously decided not to optimize profit, but to maximize affordability for many people," explained Juvencio Maeztu, Deputy CEO of Ingka.

The price pressure resulted from the concern that price increases after the pandemic could make access to products more difficult for consumers. Nevertheless, Ikea plans to keep prices largely stable this year as well. Maeztu emphasized: "In the first months of the fiscal year, we see increasing sales volumes.

The withdrawal from Russia, including the sale of 14 mega shopping centers to Gazprombank, contributed significantly to the losses. Precise figures on the sales value or the impacts were not disclosed by Ikea.

At the same time, Ikea is concerned about potential trade barriers that could arise under a possible second term of Donald Trump. The USA, the company's second-largest market after Germany, could be affected by new import tariffs on products from China, Mexico, Canada, and the EU.

Ikea sources 70 percent of its products from Europe, the rest mainly comes from Asian countries such as China, India, and Vietnam. To safeguard against future disruptions, the company has incorporated more flexibility into its supply chains after the pandemic. This proved effective even with current issues due to attacks on cargo ships in the Red Sea.

Despite the challenging environment, the company remains true to its mission. "We are determined to make Ikea as affordable as possible for the many people," said Maetzu.