Aeon net profit up 27% on improved retail margin

PETALING JAYA: Aeon Co (M) Bhd recorded a net profit of Rm28.07mil in the first quarter ended March 31, 2022, a 27.38% improvement over Rm22.03mil in the same period a year ago.

This was achieved on improved retail margin and higher impairment of trade receivables in the comparative quarter.

For the quarter under review, Aeon said in a filing with Bursa Malaysia that it registered a revenue of Rm1bil, which was slightly lower compared to Rm1.01bil in the previous corresponding period.

By segment, the group said its retail business contributed a 2.5% year-on-year (y-o-y) lower revenue of Rm857.4mil due to more consumers spending more time outdoors and dining out instead of cooking at home.

The property management services segment posted a 7.4% y-o-y higher revenue of Rm144.4mil on improved sales commission and temporary space rental in line with consumers returning to physical malls.

To capture consumer spending in the coming months, Aeon said it will accelerate and evolve its digital shift, especially by growing the adoption of myaeon2go among its consumers.

It will create Aeon Living Zone to integrate both online and offline shopping engagement experiences and advance the offering related to health and wellness.

It will also deepen its customer engagement and experience via its Aeon loyalty programme and iaeon app.

“The group will continue to leverage its ecosystem, especially in partnering and collaborating with its tenant partners, suppliers and Aeon group of companies to unlock further the value from customer demand, customer experience and to mitigate the supply chain risk.”

As the nation transitions to the endemic phase of Covid-19 and as borders reopen and activities among the communities increase, Aeon said consumer spending nationwide is expected to further improve.

“Separately, the continued global supply chain challenges as a consequence of managing Covid-19 outbreaks, especially in China, as well as the ongoing Ukraine-russia conflict may have potential impact on revenue and cost of business.

“To ensure sustainable operations and business performances, the group will continue to be proactive in crafting the strategies in order to capture consumers spending and to minimise the supply chain risk,” it said.