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IKEA profits plunge more than a quarter after tariff uncertainty

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IKEA profits plunge more than a quarter after tariff uncertainty


With the fiscal year ending in August, Sweden’s Inter IKEA – which supplies furniture to IKEA stores globally – said its annual operating profit dropped 26% due to the impact of U.S. tariffs driving up costs.

Operating profit for the fiscal year ended on Aug. 31 was 1.7 billion euros ($1.98 billion), down from 2.3 billion euros the year before, while revenue fell to 26.3 billion euros from 26.5 billion euros, after it cut prices, according to the IKEA brand owner.

IKEA stores across 63 markets around the world fell for a second year in a row to 44.6 billion euros ($52.01 billion), the furniture maker announced.

Inter IKEA said in a statement that commodity prices and logistics costs had risen in the second half of the financial year due to uncertainties following U.S. tariff announcements.

While IKEA has cut prices overall, higher U.S. tariffs have forced it to increase prices on some products in the United States, which it imports from factories in Europe and China. Lithuanian furniture manufacturer SBA, which supplies IKEA, last month launched its first U.S. factory, in North Carolina, manufacturing IKEA products such as its BILLY bookcases and KALLAX shelving units.

Empty IKEA parking lot (Getty/iStock)

The factory was planned well before U.S. President Donald Trump embarked on his tariff-hiking policies, Henrik Elm, chief financial officer at Inter IKEA, told Reuters.

But it is “very timely, of course, since that is also helping us to mitigate the effects of the tariffs on those top-selling products,” Elm said in an interview.

Inter IKEA said wholesale sales volumes rose by around 6% compared to the previous year as shoppers responded to lower prices by buying more.

U.S. Supreme Court justices raised doubts on Wednesday over the legality of Trump’s tariffs in a case that has broad implications for how Trump governs. The president, who has warned that a decision stripping him of the right to set tariffs would be a disaster, said on Thursday his administration would need a Plan B of sorts if the court’s ruling went that way.

During a back-and-forth with journalists in the Oval Office about the issue, a reporter noted that Chief Justice John Roberts had asserted that tariffs were actually taxes paid by Americans.



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BrewDog owners say craft beer company could be sold off

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BrewDog owners say craft beer company could be sold off



Craft beer brand BrewDog could be sold off after the company started the process to find new investors.

The Scottish beer brand recently announced plans to close all of its distilling brands, meaning it would no longer produce any of its spirits, including Duo Rum, Abstrakt Vodka, and Lonewolf Gin, at its distillery in Ellon, Aberdeenshire.

The company, which was founded in 2007, said it made the decision to focus on its beer brands, including the highly-popular Punk IPA, Elvis Juice, and Hazy Jane.

Now, in a statement, a spokesperson for BrewDog said the company had appointed Alix Partners to “support a structured and competitive process to evaluate the next phase of investment for the business.”

The statement said: “As with many businesses operating in a challenging economic climate and facing sustained macro headwinds, we regularly review our options with a focus on the long-term strength and sustainability of the company.

“Following a year of decisive action in 2025, which saw a focus on costs and operating efficiencies, we have appointed AlixPartners to support a structured and competitive process to evaluate the next phase of investment for the business. This is a deliberate and disciplined step with a focus on strengthening the long-term future of the BrewDog brand and its operations.”

Although no decisions have been made, a sale is under consideration.

In a statment BrewDog added: “BrewDog remains a global pioneer in craft beer: a world-class consumer brand, the No.1 independent brewer in the UK, and with a highly engaged global community. We believe that this combination will attract substantial interest, though no final decisions have been made.”

According to reports by Sky News, AlixPartners had begun sounding out prospective buyers in the last few days.

The company, which has 72 bars worldwide and four breweries in Scotland, the US, Australia, and Germany, said its breweries, bars, and venues will continue to operate as normal. It employs 1400 people across the organisation.

BrewDog’s founders James Watt and Martin Dickie are the company’s major shareholders alongside private equity company TSG, which invested £213 million in 2017, making it a 21 per cent shareholder.

In 2024, the beer brand grossed £357 million in sales, and it is a major independent brewer with 4 per cent market share in the UK grocery market.



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Craft beer brewer BrewDog could be broken up as sale process begins

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Craft beer brewer BrewDog could be broken up as sale process begins



Beermaker BrewDog could be broken up after consultants were called in to help look for new investors.

The Scotland-based brewer, which makes craft beer such as Punk IPA and Elvis Juice, has appointed consultants AlixPartners to oversee a sale process.

Last month, BrewDog announced it was closing its distilling brands, sparking concerns for jobs at its facility in Ellon, Aberdeenshire.

The company, which was founded in 2007, said it made the decision to focus on its beer products.

No decision has been made in respect of the sale process.

A spokesperson for BrewDog said: “As with many businesses operating in a challenging economic climate and facing sustained macro headwinds, we regularly review our options with a focus on the long-term strength and sustainability of the company.

“Following a year of decisive action in 2025, which saw a focus on costs and operating efficiencies, we have appointed AlixPartners to support a structured and competitive process to evaluate the next phase of investment for the business.

“This is a deliberate and disciplined step with a focus on strengthening the long-term future of the BrewDog brand and its operations.

“BrewDog remains a global pioneer in craft beer: a world-class consumer brand, the number one independent brewer in the UK and with a highly engaged global community.

“We believe that this combination will attract substantial interest, though no final decisions have been made.

“Our breweries, bars, and venues continue to operate as normal. We will not comment on any further speculation.”

Brewdog operates 72 bars around the world as well as four breweries.



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‘Better to abolish RERA’: Supreme court says law helping defaulting builders

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‘Better to abolish RERA’: Supreme court says law helping defaulting builders


New Delhi: The Supreme Court has raised serious concerns over how real estate regulatory authorities are functioning across the country. Taking a sharp view, the top court said it may be “better to abolish” these bodies, suggesting they have failed to protect homebuyers and instead appear to benefit defaulting builders. The court added that states should reconsider the very need for such authorities if they are not serving their intended purpose.

A Bench led by Chief Justice of India Surya Kant and Justice Joymalya Bagchi said states should rethink the original purpose behind introducing RERA. The court observed that instead of protecting homebuyers, the law appears to be helping defaulting builders and not serving its intended role.

Expressing strong concern, CJI Surya Kant said states should reflect on the purpose for which RERA was created. He suggested the institution is failing to serve homebuyers and instead appears to benefit defaulting builders. “All states should now think of the people for whom the institution of RERA was created. Except facilitating builders in default, it is not doing anything else. Better to just abolish this institution,” CJI Kant said, quoted by Bar and Bench.

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Last year, the High Court had stayed the state government’s decision to shift the RERA office, pointing out that the move was taken “without even identifying an alternative office location”. The court also noted that transferring 18 outsourced employees to other boards and corporations, as requested, “would render the functioning of Rera defunct”.

The Supreme Court, however, set aside the High Court’s order and allowed the state government to shift the RERA office to Dharamshala. It also permitted the relocation of the appellate tribunal to the same location. “With a view to ensure that persons affected by Rera orders are not inconvenienced, the principal appellate is also moved to Dharamshala,” the apex court said.

What Is RERA And Why It Matters

RERA, introduced in 2016, was aimed at addressing project delays, improving transparency and safeguarding homebuyers’ interests. Earlier, each state and union territory operated its own RERA website. However, in September 2025, the Ministry of Housing and Urban Affairs launched a unified RERA portal that brings together data from across states and UTs on a single platform.



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