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UPDATE 1-Greek retailer Fourlis H1 net down 84 percent on tax

* H1 net drops to 2.1 million euros

* Windfall tax shaves off 5.5 mln euros

* Sales flat

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ATHENS, Aug 24 (Reuters) - Fourlis FRLr.AT, the Greek franchisee for flat-pack furniture maker IKEA [IKEA.UL], said first-half net profit dropped 84 percent, hit by a windfall tax and austerity in Greece.

Fourlis said on Tuesday net profit fell to 2.1 million euros ($2.65 million) in the first six months of the year from 13.4 million in the same period in 2009.

Results were burdened by a 5.5 million euro “debt crisis” levy the government imposed on large firms’ profit in return for a 110 billion euro rescue deal with the EU and the IMF.

Sales were almost flat at 317 million euros with revenues from IKEA stores in Greece and Cyprus, which account for about 80 percent of operating profit, stable at 139 million euros.

IKEA business has posted robust growth in recent years but 2010 austerity policies and recession in Greece, the first the country has experienced since 1993, is hurting consumer confidence.

The stock trades on a multiple of 12 times estimated 2010 earnings, compared with a P/E ratio of 18 for Germany's Praktiker PRAG.DE, according to Thomson Reuters I/B/E/S. ($1=.7930 Euro) (Reporting by Angeliki Koutantou; Editing by Jon Loades-Carter)

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