A cosy interior showing a living room with a sofa and a rattan armchair and table.

Inter IKEA Group balance sheet

The Inter IKEA Group financial position improved during FY19. Inventories and debts went down, and the equity ratio increased from 34% to 39%. The consolidated balance sheet shows an overview of Inter IKEA Group’s assets and what is due to shareholders, suppliers, partners and other organisations.

Consolidated balance sheet
In millions of EUR 31 Aug 2019 31 Aug 2018
Intangible fixed assets 10,355 10,700
Tangible fixed assets 1,663 1,618
Financial fixed assets 295 256
Total fixed assets 12,313 12,574
Inventories 4,312 4,632
Receivables 4,692 4,046
Cash and cash equivalents 153 230
Total current assets 9,157 8,908
Total assets 21,470 21,482
     
Group equity 8,298 7,298
Provisions 705 578
Non-current liabilities 6,487 7,068
Current liabilities 5,980 6,538
Total liabilities 13,172 14,184
Equity and liabilities 21,470 21,482

Note to reader: the included abbreviated financial statements are an abridged version of the consolidated financial statements of Inter IKEA Holding B.V. as included in the Annual Report for the financial year 2019. An unqualified auditor’s report dated 7 November 2019 was issued on these financial statements. Inter IKEA Holding B.V.’s consolidated financial statements, from which these abbreviated financial statements have been derived, have been prepared in accordance with Part 9 of Book 2 of the Dutch Civil Code.

Intangible fixed assets

In general terms, fixed assets are business property intended for long-term use. Intangible fixed assets are assets that lack physical form like patents, concepts and intellectual property. Intangible fixed assets form much of Inter IKEA Group overall assets.

Most Inter IKEA Group intangible fixed assets are so-called proprietary rights for the IKEA trademarks, intellectual property and catalogue. Inter IKEA Group purchased these rights for EUR 11.8 billion. As a positive return is expected for a long period, these costs are spread over a period of 45 years, which started in 2012. This common practice, called amortisation, makes it easier to compare yearly income with expenses.

A light-filled furnished living room where a blonde woman stands on a ladder to hang up framed pictures.
IKEA Communications creates and produces IKEA communication for customers and other IKEA organisations, including the IKEA website, which attracts 2.8 billion visits a year. 

Tangible fixed assets

Tangible fixed assets are things like real estate and equipment that you can physically touch and feel. Inter IKEA Group tangible fixed assets are mainly factories and distribution centres.

Inter IKEA Group owns several offices and distribution centres, the IKEA Delft store, the IKEA Hotell and Museum, and around 40 factories. Most of the factories are in Europe. The majority produce IKEA furniture, and two produce components like screws and wooden dowels used to assemble IKEA furniture.

This year Inter IKEA Group sold two factories and closed one other. In most cases co-workers have remained in the same factories under new ownership or moved to new jobs in other nearby factories with support from the Inter IKEA Group.

An aerial view of a white and blue industrial building that is the new IKEA components factory in Nantong, China.
The new IKEA Components factory in Nantong, China, will incorporate the latest manufacturing technology to improve efficiency, quality and sustainability.

Inventories and receivables

Inventories mostly consist of IKEA products in warehouses. Last year inventory levels were higher than normal due to lower than expected sales. Inter IKEA Group took measures this year to lower inventory levels, reducing their overall value.

Receivables is money owed to the Inter IKEA Group by business partners. Most receivables are for franchise fees and products sold and invoiced to IKEA franchisees.

  • €4.3

    billion in inventories in FY19

  • €4.6

    billion in inventories in FY18

Group equity, provisions and liabilities

Equity is the capital invested by shareholders of the Inter IKEA Group plus accumulated profits over time. Equity increased with EUR 1 billion during FY19.

Of the EUR 1,485 million profit achieved during FY19, EUR 850 million will be distributed as a dividend to Interogo Holding AG. The remaining EUR 635 million will be added to Inter IKEA Group equity.

Provisions are money set aside for pension commitments, deferred taxes and claims. Liabilities are money owed to others. Most Inter IKEA Group non-current liabilities, which are due over a long period of time, consist of loans from Interogo Holding AG (a non-controlling shareholder). As in FY19, Inter IKEA Group will continue to repay EUR 500 million each year. Current liabilities are short-term loans, money due to suppliers and the current portion of long-term loans from Interogo Holding AG.

Read more about the Inter IKEA Group FY19 year in review

Read more about the Inter IKEA Group FY19 financial results

Visit the Interogo Foundation website