IKEA Australia is incredibly pleased to have delivered strong business results and sales growth of 4.8% in FY23, in challenging economic conditions.
In the FY23 financial statement, a loss of $48.5 million AUD is reported for IKEA Australia. This loss is due to the early settlement of long-term interest free loans with parent company, Ingka Holdings Overseas B.V. Excluding this, IKEA Australia generated a profit after tax of $53.3 million AUD in FY23.
The loss from early settlement of this loan has no impact on the taxable income or tax payable for IKEA Australia in FY23. The tax payable for IKEA Australia in FY23 is $28.8 million AUD.
In FY23, sales for IKEA Australia increased by 4.8% from FY22, reflecting the desire of Australians to create homes they love with the quality home furnishings at an affordable price that IKEA offers.
While the cost of goods increased in FY23, where possible, we did not pass these costs on to customers. Instead, we kept our prices as low as possible, and lowered the prices of multiple products where we could. Affordability has never been more important than in the ongoing cost-of-living crisis, and we will continue to invest in lowering prices even further, and across more products in 2024.
We have also invested in continuing our journey as an innovative omnichannel retailer with a seamless physical, digital and remote shopping experience. Investments have included new Plan and order point locations, self-serve bistro kiosks in-store and new handheld digital devices for all co-workers to enhance our accessibility and customer experience.
For 2024 we will continue to focus on growth and our vision to create a better life at home by increasing the affordability and accessibility of IKEA for the many Australians, made possible by our 4000 dedicated co-workers.