Ikea India posts Rs 1,299 crore loss in FY24; Ad spend rises to Rs 196 crore: Report
Ikea India is present in Hyderabad, Navi Mumbai, and Bengaluru. It has also expanded its online presence with its e-commerce operations in Hyderabad, Mumbai, Pune, Bengaluru, and Gujarat
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Netherlands's furniture and home decor brand Ikea, has continued to register losses in India, according to a report by Press Trust of India.
The Indian subsidiary, Ikea India, reported a loss of Rs 1,299.4 crore in FY24. A year earlier, the company posted a loss of Rs 1,133 crore.
The PTI agency in its report said the loss of Ikea India has increased largely due to investments towards expansion towards omnichannel growth.
Ikea India's advertising and promotional expenses stood at Rs 196.3 crore, up about 2 percent in FY24.
The company's total expenses were at Rs 3,152.1 crore in FY24, up 8.86 percent, as against Rs 2,895.3 crore a year before.
The company is present in Hyderabad, Navi Mumbai, and Bengaluru in India. It has also expanded its online presence with its e-commerce operations in Hyderabad, Mumbai, Pune, Bengaluru, and Gujarat.
Its revenue from operation stood at Rs 1,809.8 crore, up 4.5 percent in the financial year that ended on March 31, 2024. In FY 2023, the company's revenue from operations was at Rs 1,731.6 crore
The total income of Ikea India was up 5.12 percent to Rs 1,852.7 crore in FY24.
Ikea said it is committed to opening more stores in 2025.
"IKEA India maintained solid sales growth despite no price increase and lowering the prices on certain products in FY24. Our losses largely reflect the investment we are making towards our omnichannel growth," PTI agency quoted an IKEA spokesperson.
Ingka Holding Overseas BV, Netherlands, holds 99.9 percent equity shares of Ikea India.
Separately, IKEA got interim relief from the Delhi High Court in a trademark infringement suit filed against India's IKEY Home Studio recently.
The High Court restrained the Indian firm from using 'IKEY', 'IKEY Home Studio', or any other mark that is deceptively similar to the IKEA trademark.
The court has further listed the matter on 9 May 2025.
