AEON Posts Higher Profit After Tax of RM22.0 Million in 1Q FY2021
Kuala Lumpur, 19 May 2021
AEON CO. (M) BHD. (AEON Malaysia or the Company) posted a higher profit after tax for the first quarter of the financial year 2021 (1Q FY2021) of RM22.0 million compared to previous year corresponding quarter of RM7.5 million, an increase of 194%.
This comes on the back of the Company’s agile, entrepreneurial and “genba” approach to respond to the COVID-19 pandemic resulting in improvements in merchandise gross margin, changes to marketing mechanics and sustainable cost reduction structures. Similarly, profit from operations and profit before tax rose to RM72.7 million and RM41.8 million respectively compared to previous year corresponding quarter of RM64.0 million (13% improvement) and RM25.4 million (65% improvement) respectively.
Customers’ safety is always the Company’s top priority. To maintain physical distancing, access restrictions were implemented at AEON malls and stores nationwide throughout the pandemic, for example, by limiting the number of people between 150 to 300 persons only at any one time in AEON supermarkets depending on the space of the premises. The reduced patronage has reduced total revenue for the period under review which stood at RM1.013 billion, 15% lower compared to the preceding year corresponding quarter of RM1.191 billion.
Shafie Shamsuddin, Managing Director/Chief Executive Officer of AEON Malaysia said, “Taking into consideration of the pandemic-related disruptions, we are grateful for the continuous support from our customers, partners and suppliers, and most importantly the dedication displayed by the hard-working AEON employees who truly embodied the elements of Speed, Scale and Synergy in serving the nation.”
“As we navigate the new normal, we will continue with the positive momentum and strive for greater financial returns in ensuring our stakeholders – employees, customers, partners, shareholders and investors – are well taken care of. Notwithstanding the challenges, we will intensify merchandising effectiveness, sharpen our go-to-market strategy, remain nimble with our business delivery to match the shifting market conditions, and forge new collaborations. We aspire to create sustainable retail spaces that connect with the living zones of the communities where we operate. Ultimately, we want to elevate the customer experience in line with AEON basic philosophy of Customer First. We are excited about the vast potential of our New Retail offline-to-online approach, which will kickstart in the second half of the year, in partnership with US e-commerce BOXED,” Shafie concluded.