The company behind Ikea in WA has defied the fragility in bricks and mortar retailing with a surge in profit as its Innaloo megastore approaches its fifth anniversary.
The group has benefited from uncertain economic times, as increasingly cash-conscious shoppers seek out its flat-pack furniture and low-cost furnishings.
Accounts filed with the Australian Securities and Investments Commission show Cebas Pty Ltd, which owns the WA and South Australian Ikea franchises, lifted net profit a hefty 63 per cent last financial year to $19.8 million.
The result was underpinned by a 6 per cent rise in sales to $239.2 million. Total revenue, including foreign exchange gains, was 5 per cent higher at $253.5 million.
Cebas is owned by Alan Tribe, who was ranked at No. 37 in _The West Australian's _WA 2012 Rich List, with a personal fortune of $202 million. The 64-year-old has been the driving force behind Ikea in WA since buying the Perth franchise, then on Scarborough Beach Road in Osborne Park, in 1997. Sales have multiplied since the store was relocated to a giant purpose-built warehouse on Ellen Stirling Boulevard in Innaloo in February 2008.
Cebas' results for the year to June 30 were typically short on commentary, apart from noting its purchase during 2011-12 of the leasehold of the Ikea Adelaide store for $48.3 million. The purchase inflated Cebas' consolidated gross assets to $143.4 million from $106 million at the end of 2010-11.
Cebas' two stores are among just seven Ikea outlets in Australia, part of a global network of 338 stores in more than 40 countries that turn over in excess of .5 billion ($35.03 billion) a year.