IKEA India FY20 loss widens to Rs 720 cr; net sales up 64.7% at Rs 566 cr

Furniture retailer IKEA India saw its net loss widen to Rs 720.1 cr. in the financial year ended March 2020. The company had registered a loss of Rs 685.4 cr in the financial year ended March 2019.

However, IKEA India saw its net sales grow 64.68 per cent to Rs 566 cr in FY 2019-20 from Rs 343.7 cr in the previous fiscal. Its total revenue during 2019-20 fiscal was at Rs 665.6 cr, up 63.18 per cent, as against Rs 407.9 cr in the previous financial year.

IKEA India, which has opened its second retail store this month in Mumbai, saw its revenue from 'other income' in FY20 at Rs 99.6 cr as against Rs 64.2 cr in FY19. Besides its new flagship store in Navi Mumbai, IKEA also has plans to set up two city centre stores in Mumbai to cater the demand from the city.

IKEA is also investing in the online system and has the ambition to reach 100 million Indian customers by 2022 through its omnichannel approach. The company continues to focus on opportunities to grow the business in existing channels and through opening new channels and units; focusing on the cities of Hyderabad, Mumbai, Pune, Bangalore and Delhi NCR.

Source: Business Standard