Swedish furniture giant IKEA has continued to rack up losses in Australia despite its sales for the 2020 financial year soaring to over $1.5 billion off the back of a COVID-induced boom.
Financial documents filed with the corporate regulator on Monday night reveal IKEA’s revenue for the 12 months to the end of August grew 11.4 per cent to $1.55 billion, one of the retailer’s most significant sales jumps in years.
The majority of retailers in Australia have grown their sales this year despite the COVID-19 pandemic as government stimulus and a dearth of leisure spending has flowed into the sector. IKEA’s range of flat-packed desks have also likely been popular as millions of Australians were forced to work from home.
However, the retailer’s surging top-line growth did not flow through into its profits. IKEA reported a loss of $8.6 million for the year, a slight improvement on last year’s $12.1 million loss.