Aeon returns to black in 3Q as relaxation in lockdown boosts consumer spending

KUALA LUMPUR (Nov 26): Aeon Co (M) Bhd returned to the black with a net profit of RM16.36 million in its third quarter ended Sept 30, 2020 (3QFY20), after the retailer slipped into net loss of RM9.56 million in the preceding quarter ended June 30.

Revenue for the quarter grew by 3.7% quarter-on-quarter (q-o-q) to RM989.62 million from RM954.32 million.  

The improved earnings were mainly due to positive sentiment post relaxation of the recovery movement control order (RMCO) during the quarter.

On a year-on-year basis, Aeon's net profit more than doubled from RM7.32 million in 3QFY19, boosted by the improvement in merchandise gross margin. Meanwhile, revenue fell by 6.85% from RM1.06 billion due to lower contribution from retail business and property management service segments.

For the cumulative nine-month period ended Sept 30 (9MFY20), its net profit came in at RM14.27 million, which shrank 76% from RM59.42 million a year ago. Revenue for the period also contracted by 6.95% to RM3.31 billion against RM3.37 billion.  

On prospects, in view of the recent resurgence of Covid-19 cases, the company said it will continue to ensure the safety of its staff and customers.

The company is also committed to support local entrepreneurs by providing a platform, both online and through physical stores, to showcase, promote and sell their products.

It added that the existential challenges prompted the company to restrategise its business model, rethink the cost of doing business and strengthen its relationship with customers.

Noting that, the retailer said it will focus on digitalisation investment to support business growth.

Aeon share price dropped 0.5 sen to 76 sen yesterday, bringing a market capitalisation of RM1.07 billion. 

Year-to-date, the stock has retreated 46% from RM1.42 on Jan 2.

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