KUALA LUMPUR (May 15): Department store and mall operator AEON Co (M) Bhd (KL:AEON) said on Wednesday its net profit jumped 50.3% in the first quarter from the same quarter a year earlier, which it attributed to higher revenue and effective cost management.

Net profit for the three months ended March 31, 2024 (1QFY2024) climbed to RM57.39 million or 4.1 sen per share from RM38.18 million or 2.72 sen per share over the same period last year, AEON Co’s bourse filing showed. Revenue rose 5.47% to RM1.17 billion from RM1.11 billion.

For the quarter under review, AEON Co's retail business segment recorded a 4.2% increase in revenue to RM980.5 million, up from RM941.4 million largely attributed to festive spending during the quarter, especially in the food and clothing categories.

Its property management services segment reported a 13% revenue increase to RM186.9 million from RM165.4 million, driven by improved occupancy rates and effective rental renewals.

The group reported occupancy rates of 93.6% as of March 2024, bolstered by successful mall rejuvenation projects and store facelifts.

AEON Co managing director Naoya Okada said the group remains focused on executing its strategic priorities, despite anticipating a challenging operating environment due to cautious customer spending.

“As we celebrate our 40th anniversary in Malaysia this year, we are hosting special events and promotions to create smiles and connect hearts with our customers, business partners, and suppliers. In the coming months, customers can expect a variety of product assortments, promotional deals, and in-mall events to enhance their shopping experience,” Okada added.

Meanwhile, the group, which just opened its 35th store, AEON Setia Alam, has undertaken several more facelift projects, including at AEON Bandar Puchong, AEON Bukit Indah, AEON Tebrau City and AEON Ipoh Station 18.

AEON Co shares slipped one sen or 0.83% to close at RM1.20 on Tuesday, giving it a market capitalisation of RM1.68 billion. The stock is up 9.09% year to date.