The main company in the Ikea flat-pack furniture retail empire warned that profits would fall for two successive years after the group said it would be forced to raise prices due to the supply chain crisis and higher raw material costs.

Net profit in the year to the end of August fell 17 per cent to €1.4bn at Inter Ikea, the owner of the brand, even as online and in-store sales across its franchise system rose 6 per cent to a record €41.9bn.

The world’s biggest furniture retailer is expecting another difficult period. “For FY22 [year to the end of August 2022], we’re looking at supply disruptions still, we’re looking at raw material increases still, we’re looking at energy increases still,” Martin van Dam, Inter Ikea’s chief financial officer, told the Financial Times. “FY22 will not be easier than FY21, it will be more difficult?.?.?.?it eats away our margins in a massive way.”