IKEA brand owner warns of price hikes

IKEA will raise prices due to supply chain issues that reach far into next year.

That's according to the furniture brand's owner Wednesday (November 3).

Inter IKEA Group also reported a drop in full-year profit due to higher transport and raw material costs.

Pretax profit fell 16% in the 12 months through August to just under $2 billion.

That is down 4% on pre-health crisis levels.

It also comes despite record demand as people spend more time at home.

IKEA said keeping stores and warehouses stocked has been a challenge.

It also said supply chain disruption had led to a big drop in product availability.

IKEA Chief Financial Officer Martin Van Dam believes these issues, as well as high energy prices, could last for quite some time.

He also expects supply related costs to rise further this fiscal year.

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