PLEDGE TO MAINTAIN PRICES FOR NOW
MIDF Research expects AEON’s prospects to improve from this year
AEON Co (M) Bhd said suppliers have raised their prices but the retailer will try to ensure the prices of its products are not inflated drastically.
Managing director and chief executive officer Shafie Shamsuddin said some suppliers had increased prices by three to five per cent this year.
He said the company would still be able to maintain its prices for three to six months so that customers could adapt to the situation.
“There is no guarantee we won’t increase prices. But AEON has been able to overcome the challenges over the past two years through various campaigns and initiatives.
“Therefore, AEON will endeavour to ensure prices are not inflated drastically and we will launch a campaign on the matter soon,” he said at its annual general meeting yesterday.
AEON announced a 27.4 per cent growth in net profit to RM28.07 million in its first quarter ended March 31, from RM22.03 million a year ago.
This was attributed to better margins derived from segmented and personalised offerings coupled with disciplined cost management.
Meanwhile, MIDF Research expects AEON’s prospects to improve from its financial year 2022.
This is in line with the reopening of businesses and return of social activities, coupled with AEON’s online-merge-offline (OMO) initiatives to accelerate the digital shift via myaeon2go.
MIDF Research has maintained its earnings estimates on AEON in view of improved consumer sentiment.
Shafie said besides delivering higher profits, AEON had made headway in improving operational efficiencies, closely engaged with its customers and accelerated sustainability efforts.
“AEON malls and stores in the southern region are showing an uptrend recovery since the border reopening with Singapore.
“AEON will continue to remain resolute in our goal of creating value, and most importantly in sharing it with our stakeholders
as we move forward together.”
Shafie said to drive growth, the company would continue to accelerate its digital transformation
to seamlessly adopt OMO strategy.
“We will also deepen customer engagement and experience via
our loyalty programme and the iAEON app, an innovative platform that brings in-store experience directly to our customers.”