KUALA LUMPUR, May 30 — AEON Co (M) Bhd’s (AEON Malaysia) net profit rose to RM32.64 million in the first quarter ended March 31, 2019 from RM27.94 million in the same period a year earlier, mainly driven by higher retail revenue and margin.
Revenue for the quarter increased to RM1.21 billion compared with RM1.11 billion previously, mainly due to the impact of the Malaysian Financial Reporting Standards (MFRS) 16 accounting changes relating to lease rental and right-of-use asset amortisation, the company said in a filing with Bursa Malaysia today.
AEON Malaysia said total revenue registered by its retail business segment for the financial period-to-date was higher by 9.3 per cent at RM1.0 billion compared with RM943.9 million year-on-year.
The stronger performance of the segment was mainly due to contributions from new stores, which were opened in April 2018 and January 2019, as well as from newly-renovated stores.
AEON Malaysia’s property management services segment revenue grew 2.8 per cent to RM175.2 million in the first quarter from RM175.2 million a year earlier, mainly due to contributions from new shopping malls, which were opened in April 2018 and January 2019.
Moving forward, AEON Malaysia expects its performance for the financial year ending Dec 31, 2019, to remain challenging amid general concerns over rising cost of living, higher cost of doing business and rising global trade conflict.
It added that the company would continue to refurbish its selected stores and employ appropriate marketing and pricing strategies, merchandise assortment reformation, maintain quality customer service and operational efficiency efforts for its retail business.
For its property management services, AEON Malaysia expects the occupancy rate and rental rates to stay challenging.
“The company will continue to leverage its competitive strengths to draw customer traffic to its malls so as to continue maintaining its position as a shopping destination,” it added. — Bernama