AEON Co’s retail business recorded revenue of RM864 million in Q2 FY2023, 7.9% lower than the RM938.3 million a year earlier that was driven by pent-up demand in the transition to the pandemic’s endemic phase. (Wikipedia pic)
PETALING JAYA: AEON Co (M) Bhd’s net profit fell 36.15% to RM30.19 million in its second quarter ended June 30, 2023 (Q2 FY2023) from RM47.28 million a year ago as the shopping spree seen during that period has faded.
Group revenue declined 5.7% to RM1.03 billion in Q2 compared to RM1.1 billion previously, the department store and supermarket operator said in a filing with Bursa Malaysia.
“The retail business recorded revenue of RM864 million, 7.9% lower compared to corresponding quarter’s RM938.3 million that was driven by pent-up demand in the transition to the endemic phase period.
“However, revenue from the property management services segment, at RM169 million, was 7.5% higher compared to corresponding quarter’s RM157.2 million on improvement in occupancy rates,” it said.
Managing director Keiji Ono acknowledged the challenges faced in the first half, noting that AEON had experienced “a unique period marked by pent-up demand, which contributed to a significant surge in revenue” in the previous corresponding period.
“This momentum was also driven by the special Employees Provident Fund (EPF) withdrawal in April last year that prompted customers to accelerate their purchasing decisions.
“The exceptional demand we experienced in the previous period has subsided, and our revenue is now aligning with more typical market trends,” he said.
Additionally, the global economy remains challenging due to “unstable international situations” affecting supply chains and currency valuation, he added.
“While international travel and improved employment rates have provided support to the economy, the looming threat of inflation could potentially further constrain domestic discretionary spending,” Ono said.
AEON shares ended 2 sen or 1.74% higher at RM1.17 today, giving it a market capitalisation of RM1.64 billion.
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