Minus pent-up festivities spending, Aeon Co net profit dips 36% in 2Q

AEON Co (M) Bhd saw its net profit dip 36.2% to RM30.19 million in the second quarter ended June 30, 2023 (2Q23) compared to the same period last year when it enjoyed pent-up festivities spending.

The general merchandise store and supermarket chain operator saw its net profit in 2Q23 drop 5.7% to RM1.03 billion, it said in an exchange filing yesterday.

For the first half, its net profit was down 9.3% to RM68.37 million compared to the same period in 2022, while revenue was up 2% to RM2.14 billion.

Commenting on the performance, Aeon MD Keiji Ono said in the previous fiscal year, the company experienced a unique period marked by pent-up demand, which contributed to a significant surge in revenue.

“This momentum was also driven by the special EPF withdrawal in April last year that prompted customers to accelerate their purchasing decisions. The exceptional demand we experienced in the previous period has subsided, and our revenue is now aligning with more typical market trends,” he said in a statement.

He said that the looming threat of inflation on essential commodities could potentially further constrain domestic discretionary spending.

Aeon Co operates 28 Aeon malls, 34 Aeon stores, 8 MaxValu, 62 Aeon Wellness and 43 Daiso across the country.

Its shares price closed 2 sen up at RM1.17 yesterday, valuing the company at RM1.64 billion. The counter’s 52-week high was RM1.49 and 52-week low was RM1.13. – TMR