AEON 2Q slumps 36% on lower revenue, higher operating costs

• Revenue for the period rose 2.03% to RM2.14 billion from RM2.09 billion last year on the back of higher revenue from retail business — contributed by the new IOI Putrajaya store and Southern region stores — and higher revenue from the property management services segment due to improved occupancy rate and rental rate renewals.

KUALA LUMPUR (Aug 23): AEON Co (M) Bhd’s net profit declined 36.15% to RM30.18 million for its second quarter ended June 30, 2023 (2QFY2023) from RM47.28 million a year earlier, mainly due to lower revenue and higher operating costs.

Quarterly revenue slipped 5.7% to RM1.03 billion from RM1.1 billion last year after its retail business' topline decreased, mainly due to pent-up spending for the festivities in the corresponding quarter in FY2022, according to the department store and supermarket operator’s Bursa Malaysia filing.

Earnings per share fell 2.15 sen in 2QFY2023 from 3.37 sen a year ago. No dividend was declared during the quarter under review.

For the cumulative six months ended June 30, 2023, net profit dropped 9.26% to RM68.37 million from RM75.35 million in the same period last year, due to lower gross margin and higher operating costs. 

Meanwhile, revenue for the period rose 2.03% to RM2.14 billion from RM2.09 billion last year on the back of higher revenue from retail business — contributed by the new IOI Putrajaya store and Southern region stores — and higher revenue from the property management services segment due to improved occupancy rate and rental rate renewals.

Moving forward, the group said that it will continue to leverage its ecosystem in partnering and collaborating with its tenant partners, suppliers and AEON group of companies to optimise the value in consumer spending and enhance the value of its assets. 

"The company continues to offer promotions, enhance product assortments, optimise tenant mix, and cautiously manage the operating expenses. Furthermore, the company is committed to enhance the effectiveness of its plan to accelerate the digital shift, establish private brands that captures diverse customer values, create AEON Living Zone in the local community and implement sustainability initiatives," it said.

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