Update AEON Co 1Q profit falls 8.3% yoy to RM46.9m

by **Cals** Fri 16 May 2014, 02:18

Update AEON Co 1Q profit falls 8.3% yoy to RM46.9m

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Thursday, 15 May 2014 18:46

KUALA LUMPUR (May 15): AEON Co. (M) Bhd’s net profit fell 8.3% year-on-year (y-o-y) to RM46.9 million in the first quarter ended Mar 31, 2014, from RM51.1 million a year ago.

But, revenue rose 8.8% y-o-y to RM945.5 million from RM869.3 million.

In a statement to Bursa Malaysia, the retail group said the lower profit was due to higher operating costs including the initial costs associated with new stores opening.

On its retail business segment, AEON said the higher revenue was due to better performance of its existing stores and contributions from its new stores openings.

However, it said the operating profit was lower due to higher operating costs including the initial costs associated with new stores opening.

AEON said its property management services segment recorded higher revenue on contribution from its new shopping centre, higher rental rates and benefits from tenants revamp.

Nevertheless, the firm added the operating profit was only marginally higher due to higher operating costs such as utilities expenses.

“The Malaysian economy is expected to remain resilient this year even though domestic consumption will be facing challenges from rising cost of living as a result of increase in prices of goods and services,” said AEON.

“The group, leveraging on its 30th year anniversary activities, competitive strengths and refurbishment programme, remains optimistic of an improved performance this year.”