STOCKHOLM — The owner of most Ikea stores, Ingka, reported on Friday a more than five-fold drop in its annual net profit due to higher interest rates and its exit from Russia.

 

The group said its net profit for the 2022 fiscal year, which ended in August, fell to 287 million euros ($299 million), down from 1.6 billion euros in 2021.

 

The drop was mainly due to rising interest rates, which hit its financial market investments. Central banks have hiked rates worldwide in efforts to curb soaring inflation.

 

"The net income was also impacted by the effects of scaling down operations in Russia," the company said.

 

Foreign firms have left Russia in droves in the wake of Moscow's invasion of Ukraine, and Western sanctions against the country.

 

The furniture group's holding company, Inter Ikea, also announced a sharp drop in profits due to inflation and the withdrawal from Russia.