AEON Co’s 3Q net profit up 27% on land lease derecognition gain, lower costs

• Earnings per share rose to 0.98 sen from 0.78 sen, according to the department store and supermarket operator in a filing on Friday (Nov 24).

KUALA LUMPUR (Nov 24): AEON Co (M) Bhd’s net profit rose 26.54% to RM13.88 million for the third quarter ended Sept 30, 2023 (3QFY2023) from RM10.97 million a year earlier, mainly contributed by a one-off gain on the derecognition of lease of its Kota Bharu land, and reduced operating costs.

Earnings per share rose to 0.98 sen from 0.78 sen, according to the department store and supermarket operator in a filing on Friday (Nov 24).

Quarterly revenue was down 2.66% to RM955.9 million against RM982.01 million a year ago, dragged by lower revenue from its retail business segment due to partial store closures for renovation during the current quarter.

Compared to the immediate preceding quarter of 2QFY2023, AEON Co’s net profit has more than halved from RM30.19 million on lower sales; revenue fell 7.46% from RM1.03 billion due to lower contribution from the retail and property management services segments.

For the nine months ended Sept 30, 2023 (9MFY2023), its net profit slipped 4.71% to RM82.25 million from RM86.32 million in 9MFY2022, mainly due to lower gross margin and higher operating costs. Revenue rose marginally to RM3.10 billion from RM3.08 billion.

Looking ahead, AEON said it is committed to expediting its digital transformation, creating exclusive brands for a wide range of customer preferences, establishing AEON Living Zone within local communities, and implementing sustainability initiatives as well as managing operational expenses.

“AEON continues to place customers at the heart of its business and remains committed to add value to its customers. While we acknowledge the challenges posed by global tensions and the ongoing economic pressures, we remain optimistic about our prospects for FY2023,” said AEON managing director Keiji Ono.

Shares of AEON, which has depreciated 20% year-to-date, closed one sen or 0.92% higher to RM1.10 on Friday, giving the group a market capitalisation of RM1.54 billion.

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