Aeon records FY23 net profit growth to RM114.8 million
Retailer Aeon Co (M) Bhd (Aeon) has registered a financial year 2023 (FY23) net profit RM114.8 million, translating to a 3.2 per cent year on year (y-oy) growth.
In a results note report, the research arm of Kenanga Investment Bank Bhd (Kenanga Research) detailed that the FY23 earnings were within market expectations but had exceeded their forecast by 8 per cent.
They guided that the positive variance against their forecast was mainly from a sequentially higher fourth quarter (4Q) which was supported by stronger-thanexpected sales and margins.
During its 4QFY23, Aeon’s turnover had increased by 8.1 per cent quarter on quarter (q-o-q) to RM1.03 billion due to an 8.7 and 5 per cent q-o-q increase in its retail business and property management services, respectively.
The higher performance was spurred by the festive and yearend holiday shopping period as well as improved occupancy rates and effective rental renewals.
Its 4QFY23 earnings before interest and tax (EBIT) grew wider at a 38.7 per cent due to improved margins from better cost absorptions.
Looking at the group’s full year results, its turnover was flattish with a minus 0.3 per cent growth to RM4.129 billion while its EBIT fell by a steeper mminus 10.4 per cent due to higher costs and product discounts.
Nevertheless, the group’s net profit still grew by 3.2 per cent y-o-y to RM114.8 million thanks to a slight improvement in its margins and a lower effective tax rate which dropped 6.6 percentage points (ppt) down to 40.8 per cent.
Looking ahead, Kenanga Research reckons that in the nearterm, consumer spending will likely remain subduded due to sustained high inflation and the lack of clarity over the impending subsidy rationalisation.
“Once subsidy rationalisation measures are revealed during the year, we believe consumers will gradually ‘come to terms’ with them and resume spending within their means.
“A gradual pick-up in the local economy and job market in-line with the recovery in the global economy in the later part of the year may also help,” said the research arm.