Profits at homeware giant Ikea have dipped, despite a 50 per cent increase in online sales.

The Swedish retailer's holding company Ingka Group said operating profit fell to £1.7 billion (€2 billion) in the year ending August, as reported by Retail Gazette.

Sales increased 5.3 per cent to £33.5 billion (€39.1 billion), while pre-tax profits were up by 19 per cent, due to a rise in income from financial investments. Meanwhile, profits fell 10 per cent, despite a 50 per cent surge in online sales and a 0.7 per cent rise in in-store sales.

But Ikea, which has a store in Bristol, is looking beyond profits and aims to become a climate positive business by 2030. Earlier this week, it announced it will invest £171 million (€200 million) in green energy. Over the past decade, Ikea has invested almost £2.1 billion (€2.5 billion) into renewable energy.