In Spite of Strong Sales in Australia Ikea’s Tax Bill Dwindles
Ikea's performance in Australia once again disappointed the Swedish furniture giant. It profitability in Australia continues to be poor in spite of increased sales and a larger network of stores.
The groups tens of millions of pre-tax dollars going offshore is also reducing its profit and local tax bill significantly.
The love of the Australians' for Ikea furniture, storage products and house wares have been growing stronger with time but its after-tax profit does not reveal the same.
The retailer added approximately $100 million in sales for the 2015 financial year. Ikea's profits seem to be stripped away by a range of unexplained costs and payments amounting close to $90million. In the year, the retailer's gross profits have been a robust $300million or more.
Ikea Australia reported a drop in net profit for 2015 which dropped to $15.1million compared to $21.64million last year. The slide in profitability is a huge thirty percent. However, the revenue in 2015 grew to $827.39million from $733.46million last year which is a gain of thirteen percent.
Ikea, the Swedish retailer has a global presence with operations in more than forty countries.
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