Higher tax weighs on Aeon final-quarter results

PETALING JAYA: Aeon Co (M) Bhd’s net profit for the fourth quarter ended Dec 31, 2019 fell 6.8% to RM49.88 million from RM53.54 million a year ago, due to higher tax expense.

For the quarter under review, the company registered revenue of RM1.17 billion, which was higher by 5.4% as compared with RM1.11 billion recorded previously. It has proposed to declare a 4 sen dividend for the quarter under review.

For the full-year period, its net profit grew 3.97% to RM109.29 million versus RM105.12 million last year.

Meanwhile, its revenue expanded 4.3% to RM4.54 billion from RM4.35 billion, thanks to contributions from newly renovated stores and newly opened specialty stores in this reporting year as well as new stores which were opened in April 2018 and January 2019.

On prospects, Aeon said the outbreak of the Covid-19 has affected the economy in general, including the retail sector, and it remains to be seen as to how long the outbreak will persist.

Barring the economic stimulus package to be announced by the government, the company is expecting a moderate growth due to the challenging environment.

“The company is taking active measures to ensure its businesses remain resilient during this period through innovative marketing strategy, realignment of its merchandise assortment to be in line with the current sentiment of the consumers and tackling the crisis together with its business partners,” it added.