Swedish furniture giant Ikea has reported net profit growth of 6.1% to €2.7bn for the year to August 31, 2010.
The company, which operates in 39 countries, also grew sales by 7.7% to €23.1bn. The group's strong result was due to increasing sales, higher gross margin and improvements to the cost structure in the running business, said the company.

Group president and ceo Mikael Ohlsson said: "FY10 was a good year financially for us - sales grew despite tough market conditions in many countries. Profits give us the resources to grow and reach more people on existing and new markets as well as lowering prices. The main part of the profit was re-invested in existing and 12 new stores in order to become even more inspiring and accessible. In times like this, even more people appreciate value for money in terms of good design and functional home furnishing products at affordable prices and we are committed to continuing that journey."

The company continued to invest in renewable energy sources in 2010, and donated €45m to social projects through the Ikea Foundation.

The retailer currently operates 18 stores in the UK, and in November reported a like-for-like sales increase of 1% to £1.2bn for the year to August 2010.