AEON SUSTAINS REVENUE GROWTH IN 1H FY2023 AMID A CHALLENGING ECONOMIC LANDSCAPE
Kuala Lumpur, 22 August 2023 – AEON CO. (M) BHD. (AEON or the Company) posted RM2,139.8 million in revenue for the first half ended 30 June 2023 (1H FY2023), marking a 2% increase from the corresponding financial period (1H FY2022) of RM2,097.3 million.
The Company’s total revenue for this quarter reached RM1,033.0 million, reflecting a 5.7% decrease when compared to the corresponding quarter of RM1,095.5 million in the prior year.
AEON’s retail business segment generated a revenue of RM864.0 million, marking a decrease of 7.9% in comparison to the corresponding quarter’s RM938.3 million due to the surge of corresponding quarter’s revenue caused by pent-up demand after transitioning into endemic phase with the reopening of national borders and resumptions of economic, social and tourism activities.
Notably, the property management services segment experienced revenue growth with a 7.5% increase, totalling RM169.0 million, compared to the corresponding quarter’s RM157.2 million attributed to improvements in occupancy rates.
Keiji Ono, the Managing Director of AEON, acknowledged the challenges faced during the first half of this year’s performance stated, “In the previous fiscal year, AEON 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.”
“Additionally, the global economy remains challenging due to unstable international situations affecting supply chains and currency valuation. While international travel and improved employment rates have provided support to the local economy, the looming threat of inflation on essential commodities could potentially further constrain domestic discretionary spending.”
Keiji Ono also said that amidst the challenge ahead, AEON remains committed to delivering consistent value to its customers and stakeholders. While the pace of growth has normalised, we are strategically positioned to leverage our strengths, adapt to changing market dynamics, and continue pursuing sustainable growth opportunities, leveraging its ecosystem through partnerships and collaborations with tenant partners, suppliers, and the AEON group of companies in Malaysia.
Furthermore, AEON is steadfast in its commitment to enhancing the effectiveness of its plan to accelerate its digital shift. The Company also aims to strengthen private brands that capture diverse customer values, create AEON Living Zones within local communities, and implement sustainability initiatives.
These strategic steps underscore AEON’s dedication to not only weathering the current economic landscape but also laying a foundation for sustainable growth and development in the future.