Swedish furniture retailer Ikea Group reported global profit rose 20 per cent following its fifth year of sales growth in the UK last month and rapid growth in China.
Total sales for the financial year reached €34.2bn (£29.1bn), up 7.1 per cent from last year, and sales grew in 27 out of 28 markets.
China was one of the company's fastest growing markets, but based on sales, Germany, the US, France, the UK and Sweden topped the bill.
Net profit increased 19.6 per cent to €4.2bn compared to last year
A whopping €443m was set aside for employee loyalty bonus programmes in 2016 to attract, develop and retain workers, president and chief executive Peter Agnefjäll said.
The flat-pack furniture retailer, which runs 340 stores in 28 countries, opened 12 new stores and 19 new format pick-up and order points this year while continuing work to open its first stores in India and Serbia.
Why it's interesting
Strong sales growth made Ikea profitable this year, and it is now focused on becoming the world's leading home furnishing multichannel retailer so that people across the world will know their Kallax shelving units from their Billy bookcases.
New capabilities for in-store and online shopping are being developed to cater for consumers' wants and needs.
Of the company's sales, €1.4bn (£1.1bn) were made online.
Ikea is also working to have a more positive impact on the planet and has allocated more than €3bn (£2.5bn) to become resource and energy independent by 2020.
What Ikea said
“Growth and profitability give us freedom to choose our own way, the flexibility to move fast and the independence to think and invest long term,” Agnefjäll said.
“We are in a good place and we have an exciting journey ahead with a strong focus on continuous growth and efficiency in our operations.”
Ikea will continue to strengthen business by focusing on retail and retail innovation, creating growth that builds value for customers, Agnefjäll said.