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Ultimate Guide to IKEA Stock:

If you look around your house right now, you will have at least one IKEA product lying around in some corner of the house. Whether it is a chair, a cupboard, or even a tiny kitchen shelf, IKEA has taken over the furniture market across the world.

IKEA provides modern furniture designs and eco-friendly and simplistic interior design, which gives an aesthetic touch to your house. The brand has 378 stores spread across 30 countries as of 2021 and has sold products worth $44.6 billion in the year 2018 alone.

If you wish to know more about IKEA, its history, and company profile, this article has got you covered. Please keep reading to understand the investment opportunities in IKEA stock and their prospects.

IKEA: Company History

IKEA is a Sweden-based conglomerate company that manufactures, designs, and sells several home services, including interior designing, home accessories, appliances, and ready-to-assemble furniture items.

Ingvar Kamprad was 17 when he founded IKEA in 1943, and he started the business as a mail-order sales company which later switched to a furniture store in 1948.

It opened its first store in Älmhult, Småland, back in 1958, and then within a few years, it had stores in Norway, Denmark, and other parts of Europe.

In 1985, it expanded outlets to the United States. Today, Germany is the biggest market for IKEA with 53 stores, followed closely by the USA with 51 IKEA stores. IKEA also plans to open its largest store in Pasay, the Philippines, in 2021.

IKEA Company Profile

IKEA functions very differently compared to other companies. Being a conglomerate chain, it has a huge network of employees worldwide with very complicated hierarchy branches.

The IKEA Group is owned by INGKA Holding B.V. It is responsible for all IKEA centers, product sales, and customer services for all IKEA users. It is a franchisee that pays Inter IKEA Systems 3% of royalties.

The IKEA brand is different from the IKEA Group and comes under the Inter IKEA systems B.V., Netherlands. It, in turn, is owned by Inter IKEA Holding, B.V. Inter IKEA Holding also takes care of designing and manufacturing IKEA goods.

IKEA is controlled by many different foundations and organizations in Netherlands and Liechtenstein, forming a very complicated corporate structure.

IKEA has 378 stores spread over 30 countries and earns nearly $40 billion every year in revenue. Most IKEA stores come under the Inter IKEA Systems, with consumers buying products offline.

They have a huge internet consumer base of 2.1 billion visitors on their webpage, which has around 12,000 products for sale. You can only imagine the amount of sales revenue they receive.

Total Number of Employees70,000 employees worldwide
Total Number of Shareholders Not Available
Key Management PersonsJesper Brodin (CEO, Management Board Member)Juvencio Maeztu (CFO and Deputy CEO)Kurt-Jörgen Olsson (General Counsel, Corporate Secretary Permanent Invitee)Olivia Ross-Wilson (Communication ManagerDoris Lan (CEO Assistant)Ulrika Biesert (People & Culture Manager)    
List of Supervisory BoardGerard Groener (Leader, IKEA Centres) Barbara Martin Coppola (Leader, Digital) Krister Mattsson (Leader, Investments) Davide Urani (Leader, Strategy, Process & Organizational Design) Tolga Öncu (Leader, Retail Operations)  

IKEA Company Financials

Here’s a table to represent IKEA INGKA Group’s Net Income in a million euros throughout these years:

Table 1: IKEA INGKA Group’s Net Income in Million Euros

YearNet Income in Euros
20164200 million
20172473 million
20181468 million
20191817 million
20201189 million

Financial Analysis Summary

Overall, IKEA earned annual revenue of 41.3 billion euros in 2019. However, sales fell slightly due to the COVID-19 pandemic, bringing down the annual revenue to 39.6 billion euros in 2020.

The Company peaked in net income during the 2016 fiscal year, where it earned 4.2 billion euros. Revenue has been declining ever since.

IKEA has been reaping profits for a long time. For instance, in 2004, IKEA group earned a combined profit of $553 million before taxes.

They have over 1.2 billion online visitors on their IKEA website, which sells over 12,000 products. With more than 300 stores in 30 countries, IKEA has been a profitable firm for a long time.

How to Buy IKEA Stock?

Unfortunately, because of the complex corporate structure of the conglomerate and the fact that several foundations and trusts own it, IKEA is still not public. That means you cannot buy an IKEA stock on any stock exchange.

However, you can keep checking the news of IKEA and INGKA if they ever decide to go public. You can also look into various alternatives of IKEA if you wish to invest in a furniture conglomerate.

You can buy stocks through any of the stock exchanges in the country you live in.

The first step to buy any stock is to pick an online broker in your country.

After opening an account with a trading platform, search for the Company you wish to invest in.

Note down their ticker symbol and research about their share and stock prices. Invest only if you trust the Company and are patient to reap profits in the future.

IKEA Stock Price Symbol

As IKEA is not publicly traded, it does not have its stocks or shares on any stock exchange market. Thus, you will not find any IKEA ticker codes or symbols available on any stock exchange pages.

Rewards and Risks of Investing in IKEA

The IKEA Group is currently not available for the public; however, you can still learn the risks and rewards of investing in IKEA! 

Rewards

  • IKEA is a billion-dollar valued conglomerate that operates in 30 countries globally with more than 350 stores.
  • They have an online website that has 1.2 billion visitors viewing 12,000 plus products.
  • Their revenue in 2019 was $44.6 billion, which helped them reap huge profits.
  • IKEA has worked tirelessly on switching to eco-friendly and environmentally friendly products, which is the future.

Risks

  • One of the major risk factors in the case of IKEA is that the Company’s sales and revenue have been dropping since 2016.
  • The complex, intricate structure of the Company has received a lot of backlashes.
  • Post-Pandemic, the Company faced losses, and its revenue dropped to $39.6 billion.
  • They have several lawsuits going on against them related to environmental hazards and other labor-related lawsuits.
  • Currently not publicly traded.

Top Alternatives of IKEA

Though IKEA is a huge brand, it is not public as of now. There are several other companies with similar profiles where you can invest. A few of them also offer their stocks publicly.

Here are some companies that you can read into:

Key News about IKEA Company

IKEA is always in the news because it is a huge company and is spread across the world. Recently, they opened their online store in India. They are also planning to open a huge expansion in India for Rs 5,500 Crores.

During the COVID-19 pandemic, IKEA was in the news for falling revenue due to stores closing globally. However, they are gradually picking up the pace.

You can keep reading about IKEA in your country and also on a global level.

FAQ

Is  IKEA a Publicly Traded Company?

If you are wondering whether or not you can invest in IKEA, the answer is a no. IKEA is not a publicly-traded company.

Sadly, IKEA Group is a privately held conglomerate which is why their shares are completely locked.

Where Is IKEA located?

The IKEA Group is based in Sweden. However, it is owned by the INGKA Foundation, which is in the Netherlands. Several other trusts and foundations in the Netherlands. They have 378 stores located in 30 different countries.

What Is IKEA Share Price?

Since IKEA is not publicly traded, it does not have its shares or stocks on the market. Thus, the IKEA stock price or share price does not exist. You can, however, check the share prices of IKEA’s competitors.

Summary

Despite being a billion-dollar conglomerate, the intricate and complex structure of the IKEA Group has kept them private. We hope sometime in the future, IKEA becomes publicly traded.

Keep reading about the IKEA Group and INGKA foundation to keep up with their news and announcements. There is no guarantee that IKEA will go public. We advise you to keep looking out for more information.

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