Aeon Co’s 4Q net profit climbs 31%, flags policy risks ahead

• Net profit for the three months ended Dec 31, 2023 (4QFY2023) was RM32.58 million compared to RM24.91 million over the same period last year, Aeon Co said in an exchange filing.

KUALA LUMPUR (Feb 23): Department store and mall operator Aeon Co (M) Bhd said on Friday that its net profit rose 31% in the fourth quarter from a year earlier, thanks to higher occupancy rate, rental renewals and cost control, while flagging risks from government policy measures. 

Net profit for the three months ended Dec 31, 2023 (4QFY2023) was RM32.58 million compared to RM24.91 million over the same period last year, Aeon Co said in an exchange filing. Revenue for the quarter, however, slipped 2.68% to RM1.03 billion from RM1.06 billion, due to lower retail sales and high base of comparison.

Facelift projects in the pipeline include AEON IOI Bandar Puchong, AEON Bukit Indah and AEON Tebrau City, the company said. The company also plans to open its new stores at Setia City Mall and KL Midtown, it said.

The company, however, raised concerns over upcoming subsidy rationalisation, hike in the services tax, as well as introduction of high-value goods tax which could pressure consumer spending on high-value items.

For the full year of FY2023, Aeon Co’s net profit increased by 3.24% to RM114.83 million from  RM111.23 million. Revenue slipped 0.29% to RM4.13 billion from RM4.14 billion in the previous year, due to a high base of comparison last year and partial store closures for renovation.

The group proposed a final dividend of four sen per share for FY2023 — which is equivalent to RM56.2 million or a 49% pay-out ratio. The group had paid a four-sen-per-share dividend for FY2022 and a three-sen-per-share dividend for FY2021.

“Amid challenges ahead, the company remains committed to accelerate digital shift, establish private brands that capture diverse customer values, create AEON Living Zone in the local community, and implement sustainability initiatives, while effectively managing operating costs,” Aeon Co added.

Shares of Aeon Co closed two sen or 1.77% lower at RM1.11 on Friday, giving it a market capitalisation of RM1.56 billion. In the past 12 months, the counter has fallen over 17%.

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