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IKEA Posts 5.4% Rise in Full-Year Net Profit

Stockholm, Sweden: According to a report by the Wall Street Journey, IKEA International AS, the world’s largest furniture retailer, saw net profit rise over 5% in fiscal 2015, with record sales growth in Germany and higherthan- expected trade at its store in South Korea, which opened in December 2014.

The Swedish low cost furniture retailer reported a net profit of €3.5 billion (USD3.84 billion) for fiscal 2015, up from €3.33 billion in the same period a year earlier.

The privately held company announced its fiscal 2015 results and used its comprehensive earnings report to underscore its earlier comments about the market.

“Most of the growth came from comparable stores, although new stores and online expansion contributed substantially to the result,” it said. “While the growth is well distributed across most markets, Germany shows record growth and also Southern Europe is seeing a positive development. North America continues to do well, and the newest IKEA market, South Korea, performs above expectations.”

The company opened its first store in South Korea in December 2014, and it continued to advance retail plans in India. In total, it opened 13 new stores this year and three new pickup and order points, where customers can view a selection of the IKEA range and pick up preordered items.

The privately held company confirmed that in the full-year 2015 it paid a dividend to its owner, Stichting INGKA Foundation, of €666 million, up from €660 million in the previous year.