Ikea India's Ad Spend Hits To Rs 196.3 Cr As In FY24: Report

Ikea India reported a loss of Rs 1,299.4 crore for the financial year 2024 (FY24), marking an increase from the ₹1,133 crore loss reported in the previous fiscal year.

According to a report, the widened losses are attributed to investments to expand the company’s omnichannel operations.

Ikea India’s advertising and promotional expenses rose by 2 per cent in FY24, reaching Rs 196.3 crore. Total expenses for the year were Rs 3,152.1 crore, an 8.86 per cent increase from Rs 2,895.3 crore in FY23.

The company, which has a physical presence in Hyderabad, Navi Mumbai and Bengaluru, has also bolstered its digital footprint through ecommerce operations in Hyderabad, Mumbai, Pune, Bengaluru and Gujarat.

Despite the challenges, Ikea India reported a revenue from operations of Rs 1,809.8 crore in FY24, reflecting a 4.5 per cent growth compared to Rs 1,731.6 crore in FY23. Total income rose by 5.12 per cent to Rs 1,852.7 crore during the same period.

"Ikea India maintained solid sales growth despite no price increase and lowering the prices on certain products in FY24. Our losses largely reflect the investment we are making towards our omnichannel growth," said an Ikea spokesperson.

The company reiterated its commitment to further expansion, announcing plans to open more stores in 2025.

Ikea India is predominantly owned by Ingka Holding Overseas BV, Netherlands, which holds a 99.9 per cent stake in the company.

In a separate development, Ikea secured interim relief from the Delhi High Court in a trademark infringement case filed against India’s Ikey Home Studio.

The court has issued a directive restraining the Indian firm from using the marks 'Ikey,' 'Ikey Home Studio,' or any other branding that closely resembles the Ikea trademark.

The case has been scheduled for further hearing on 9 May 2025.