CEO Morning Brief

AEON Declares Higher Dividend of Four Sen as Annual Profit Up 30.4%

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Publish date: Thu, 23 Feb 2023, 08:52 AM
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TheEdge CEO Morning Brief
AEON declares higher dividend of four sen as annual profit up 30.4%

KUALA LUMPUR (Feb 21): AEON Co (M) Bhd’s net profit for the fourth quarter ended Dec 31 (4QFY2022) plummeted 64.9% to RM24.92 million from RM70.98 million in the same period last year, mainly due to an increase in promotional activities, maintenance costs and lower reversal of impairment of receivables.

It declared a final dividend of four sen for FY2022, which is higher than the three sen paid in FY2021. The proposed entitlement and payment dates for the final dividend will be determined at a later date

The retail malls operator which achieved pre-pandemic levels of profitability in FY2022 warned that prospects will continue to be challenging as consumers in Malaysia continue to remain cautious in their spending amidst ongoing inflationary pressures alongside a projected economic slowdown.

Nevertheless, the group said the reopening of China’s borders and gradual pick up in international travel are expected to spur the local economy. As such, the company plans to leverage its ecosystem in partnering and collaborating with its tenant partners, suppliers and AEON group of companies to optimise the value in consumer spending and enhance the value of the company’s assets.

AEON’s quarterly revenue was higher 7.03% at RM1.06 billion, from RM992.1 million in the corresponding period last year, lifted by better performance of its retail and property management services businesses.

On an annual basis, its net profit rose 30.48% to RM111.23 million in FY2022 compared with RM85.29 million in FY2021. Annual revenue also increased 14.07% to RM4.14 billion from RM3.63 billion.

Commenting on the group’s result, Aeon managing director Keiji Ono said the group achieved growth in revenue and profit as a direct result of the resumption of economic activities, coupled with higher spending during festivities.

“Despite the ongoing global inflationary pressures and supply chain challenges, we have managed to achieve pre-pandemic levels of profitability, which is a remarkable accomplishment,” Keiji said in a separate statement.

AEON Co share price ended unchanged at RM1.37, which translates into a market capitalisation of RM1.92 billion.

Source: TheEdge - 23 Feb 2023

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