Ikea’s profits remained static at €3.3bn (£2.5bn) during the 2014 financial year as it increased the bonuses it handed out to workers by €98m (£73m).

Ikea profits remained flat as it increased investment in staff

The furniture specialist’s profits remained flat despite total sales increasing by 5.9% year-on-year to €28.7bn (£21.5bn).

Profits stalling this year came after Ikea profits increased 3.1% to €3.3bn (£2.5bn) in the previous financial year.

“We’re determined to have a positive impact on people and the planet.”

Peter Agnefjäll, Ikea president and chief executive

Ikea president and chief executive Peter Agnefjäll believes it was “a good year” for the business.

He said: “A key factor to our strong performance is that we have a long-term view, and don’t aim to maximise short-term profits.

“I am happy to see increased growth in all our sales channels; in existing stores, in the opening of new stores and in ecommerce. We reached some important milestones towards becoming energy independent and saw a 58% increase in the sales value of products that enable people to live a more sustainable life at home.”

Ikea reports market conditions continued to improve with an “upward trend” in Europe and a strong performance in China and North America.

During the year there were 716m visits to Ikea stores and more than 1.5bn visits to the website.

The furniture retailer also set aside €200m (£149m) to its loyalty programme ‘Tack!’ during the year.

Agnefjäll added: “We have an ambitious growth agenda and at the same time we’re determined to have a positive impact on people and the planet.

“Our size gives us a unique opportunity to make a difference and contribute to positive change in society.”