Connect with us

Companies

IKEA expects profit decline over supply chain crisis, cost

Published

on

Spread the love

IKEA, the world’s largest furniture group, has said it expects a decline in profits for the next two years due to a potential price hike of its products amid the global supply chain crisis and increasing cost of raw materials.
The Netherlands-headquartered multinational conglomerate’s net profit in the year ended August decreased 17 per cent to 1.4 billion euros
The Netherlands-headquartered multinational conglomerate’s net profit in the year ended August decreased 17 per cent to 1.4 billion euros despite a record 6 percent growth in online and in-store sales across its franchise system to 41.9 billion euros. The company’s profit was down 4 percent in the pre-pandemic fiscal 2019.
The company, which makes money mainly from sales of goods to its franchisees, said in October retailers’ sales totalled a record 41.9 billion euros, up 6 percent on the year and up 1 percent from fiscal 2019 as locked-down consumers spent more than ever on their homes, and despite product shortages.
Privately-held Inter IKEA said in its annual summary that the coronavirus pandemic affected its operating income in FY21. The biggest cause was the steep increase in transport and raw material prices in the second half of the financial year, it added.
In an interview, Martin van Dam, Inter Ikea’s chief financial officer, said that the company is expecting supply disruption to continue along with the increase in raw material and energy prices during the fiscal year 2022.
He added that the fiscal year 2022 will not be easier than the previous fiscal year.
The company would increase prices for the first time since 2019. Van Dam said they want to stay as low-priced as possible, adding that the move does not necessarily mean surges for customers as this depended on how much retailers such as Ingka Group passed on and how much they adopted.
However, he said the hike in prices is unavoidable because of the severity of problems in supply chains.
Inter Ikea spent 250 million euros to mitigate supply chain disruptions, from buying its containers to moving goods by trains rather than by ship.

Announcements

Dubai Chambers launches one-stop digital platform to help businesses start, grow and expand

Published

on

Spread the love

Starting and growing a business in Dubai is set to become easier with the launch of Business in Dubai, a new digital platform by Dubai Chambers that brings together essential corporate services in one place.

Designed as a single gateway for companies, the platform connects businesses with trusted service providers, helping them access everything from financial solutions to technology, marketing and certification services without having to navigate multiple channels.

The initiative aims to simplify business operations while strengthening Dubai’s position as one of the world’s most competitive destinations for investment and entrepreneurship.

What does the platform offer?

The Business in Dubai platform currently provides 65 corporate services through seven accredited partners, offering companies a wide range of support as they establish or expand their operations in the emirate.

The services are grouped into four key categories:

  • Financial services
  • Marketing and business growth services
  • Technology services
  • Testing, inspection and certification services

The current network of partners includes ZENDATA Cybersecurity, FAST Ventures, Mamo, OCTA, SGS Gulf Limited, Vault, and Pemo.

Helping businesses grow

Dubai Chambers said the platform has been designed to save companies time and resources by bringing multiple business services under one digital roof.

Khalid AlJarwan, Executive Vice President of Commercial and Corporate Services at Dubai Chambers, said the initiative reflects the organisation’s commitment to creating an environment that supports business growth both locally and internationally.

He said the platform will strengthen Dubai’s investment ecosystem by making it easier for companies to access the services they need to scale their operations and contribute to the emirate’s long-term economic development.

Boost for the digital economy

Saeed Al Gergawi, Vice President of Dubai Chamber of Digital Economy, said the platform will particularly benefit businesses operating in the digital economy by simplifying access to trusted service providers.

He added that the initiative creates a more flexible and efficient business environment, enabling entrepreneurs and companies across different sectors to focus on growth rather than administrative processes.

A single digital gateway

By consolidating key business services onto one platform, Dubai Chambers aims to reduce the time and effort companies spend searching for service providers, allowing them to concentrate on innovation, expansion and day-to-day operations.

The launch forms part of Dubai’s wider efforts to strengthen its business ecosystem and reinforce its position as a leading global hub for trade, investment and entrepreneurship.

Continue Reading

Announcements

Elon Musk Becomes world’s First Trillionaire Following SpaceX’s historic Listing

Published

on

Spread the love

Shares in Elon Musk’s aerospace and technology company SpaceX have surged on their trading debut in New York, in what is being described as the largest initial public offering in history.

The stock climbed as much as 30% in early trading on the Nasdaq, pushing the company’s valuation above $2 trillion and briefly placing it among the most valuable firms in the United States.

The listing, which raised more than $75bn, marks a dramatic milestone for the firm founded in 2002 by Elon Musk, who has become one of the most influential—and divisive—figures in global technology.

Speaking at a launch event in Texas, Mr Musk said the company’s ambitions extended far beyond Earth. “SpaceX wants to be able to take you to the Moon, take you to Mars, and ultimately beyond,” he said, adding that its teams would “make that happen” for customers.

The billionaire entrepreneur—Elon Musk—has reportedly become the world’s first trillionaire following the surge, according to market estimates cited in the offering’s early trading performance.

The IPO priced more than 555 million shares at $135 each, valuing the company at just under $1.8 trillion ahead of its market debut. Within hours of trading, prices peaked at around $175 per share.

The listing also allows for the potential sale of an additional 83 million shares, which could lift total proceeds beyond $86bn.

Investor demand was reported to be heavily oversubscribed, reflecting strong interest in both space exploration and the company’s expanding role in satellite communications and artificial intelligence.

SpaceX has increasingly evolved from a rocket launch provider into a broader technology conglomerate, incorporating satellite operations and artificial intelligence assets linked to Mr Musk’s wider business portfolio.

Market analysts say the listing is being closely watched as a potential benchmark for other high-profile technology firms, including artificial intelligence companies expected to pursue public offerings in the coming months.

The debut also comes against the backdrop of Mr Musk’s increasingly polarising public profile, shaped by his political commentary, business decisions, and ownership of social media platform X.

Despite the controversy, investor appetite for the company appears undiminished, with strong early demand signalling continued enthusiasm for Musk-led ventures.

Continue Reading

Announcements

Flying to Abu Dhabi? Etihad Now Covers Your Medical Insurance

Published

on

Spread the love

International visitors flying to Abu Dhabi with Etihad Airways will automatically receive complimentary medical travel insurance for up to 15 days, under a new initiative launching in July 2026.

The cover will be provided at no additional cost on eligible Etihad-operated flights from July to December 2026, with no application required. It will apply only to passengers whose point of origin and point of sale are outside the UAE.

Travellers using Etihad’s stopover programme in Abu Dhabi will also be covered during their stay, subject to terms and conditions.

The initiative has been launched in partnership with Department of Culture and Tourism Abu Dhabi and will be underwritten and administered by Daman National Health Insurance Company.

Officials say the scheme is designed to simplify travel planning and enhance the visitor experience, particularly during peak tourism periods when the emirate is targeting higher stopover and leisure traffic.

“This initiative ensures we meet that demand with an exceptional, end-to-end visitor experience,” said Saleh Mohamed Al Geziry, Director General for Tourism at DCT Abu Dhabi.

Etihad’s chief executive Antonoaldo Neves said the offer would allow passengers to focus on their visit rather than pre-travel formalities, calling it an example of closer cooperation between an airline and a destination.

Abu Dhabi has been expanding its tourism offerings in recent years, with major attractions including Saadiyat Island, Yas Island and the Sheikh Zayed Grand Mosque, as it seeks to strengthen its position as a global stopover hub.

Continue Reading

Popular

© Copyright 2025 HEADLINE. All rights reserved

https://headline.ae/