Aeon expects steady growth

KUALA LUMPUR: Aeon Co (M) Bhd is expecting steady revenue growth of 5% this year, with 30% to 40% to come from the food segment.

Managing director Nur Qamarina Chew Abdullah said the group is growing consistently on a year-on-year basis.

“We are also expecting the food segment to grow by double digits this year,” she told reporters on the sidelines of a salmon promotion at Aeon’s Bandar Utama supermarket in Petaling Jaya yesterday.

Aeon’s revenue rose to RM3.514 billion for the financial year ended Dec 31, 2013 compared with RM3.255 billion a year ago.

On expansion plans, Nur Qamarina said the retailer will open another three Aeon outlets in the third quarter of 2014 in Taiping, Bukit Mertajam and Kuala Lumpur.

The retailer currently operates 27 outlets and four MaxValu supermarkets nationwide, and targets to have 30 outlets and six MaxValu supermarkets by year-end.

“The cost of a new store is estimated to be around RM60 million to RM100 million depending on the size and location,” Nur Qamarina said.

Aeon has set aside RM700 million to refurbish its outlets and has plans for three more. Last year, it allocated RM500 million in capital expenditure.

This article first appeared in The Edge Financial Daily, on March 19, 2014.


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