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. Last Updated: 07/27/2016

6 Years On, IKEA Still Waits Profit

IKEA Russia is finally close to making a profit after six years of operations and nearly $2 billion in investments, the company's new general director, Per Kaufmann, said at a news conference last week to mark the company's anniversary.

"We believe in Russia and hope that we will be profitable in the long term," said Kaufmann, whose company has built five furniture stores, three Mega Malls, a factory and a distribution center since entering the Russian market in March 2000.

"We have invested $1.7 billion so far. This is more than in any other country," he said. "If you don't include oil companies, then we have invested more than any other firm."

Despite being Moscow's second-largest landlord, with income of $430 million, according to Forbes, the company is not planning on scaling back investments to make a quicker profit.

"At the end of the year, there will be eight Mega shops. But we want to build 11 more," Kaufmann said, adding that the speed depended on many factors.

He said he envisaged doubling IKEA's investments in Russia.

IKEA is also planning to triple the space in its Moscow region distribution center and open two more factories, the company said in a statement.

Kaufmann, who in the past ran IKEA's operations in both Italy and France, takes over from Lennart Dahlgren, who helped to set up the company's Russian operations.