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Retail euros 3bn Ikea dividend despite small profit rise

January 29, 2014

Zoe Wood

Flatpack furniture group Ikea is paying a bumper euros 3bn (pounds 2.5bn) dividend despite posting a modest uptick in 2013 profits. The retailer said sales and profits increased by more than 3% in the year to 31 August - weaker than some analysts expected. The performance nontheless triggered the first payment to its Dutch-registered parent company, the Stichting Ingka Foundation , in six years and came as chief executive Peter Agnefjall pointed to improving consumer confidence around the world. Ikea reported underlying profits of euros 3.3bn on sales of euros 28bn in the year to 31 August. The retailer managed to increase its margins - a key industry measure - by 1.5 percentage points to 43.3%, despite cutting average prices. UK retail manager Gillian Drakeford says sales have accelerated in the new financial year, with the chain reporting growth of 9% over the autumn and Christmas trading period. Zoe Wood

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Source: Guardian (UK)

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