IKEA owner Ingka's profits rise after price hikes

STORY: Ingka Group, the owner of most IKEA stores, on Friday reported a 9% rise in annual operating profit.

Price increases have helped it offset higher input costs.

And compensate for costs incurred to wind down in Russia.

The world's biggest furniture retailer said operating profit over the 12 months through August was just over $2.1 billion, on sales growth of 6%.

In March, it had predicted price increases would average 12% in the year.

The company's finance chief told Reuters the operating profit reflected good performance across divisions, which also include shopping malls and an investment arm.

However, net profit tumbled 82% to around $297 million.

Ingka attributed this to higher interest rates, which hit one of the parent company’s investment portfolios.

In March it closed its IKEA stores in Russia, which had previously accounted for around 4% of sales.

It has since laid off most of its 12,000 employees in the country.