KUALA LUMPUR (Aug 29): AEON Co (M) Bhd (KL:AEON) said  its second quarter net profit dipped 7.7% year-on-year to RM27.9 million from RM30.2 million, primarily due to lower revenue.

Earnings per share for the three months ended June 30, 2024 (2QFY2024) dropped to 1.97 sen from 2.15 sen, according to the department store and mall operator's filing with Bursa Malaysia on Thursday.

Revenue inched down 1.2% to RM1.02 billion from RM1.03 billion in 2QFY2023, with retail business revenue falling 3.1% to RM836.8 million from RM864.0 million, mainly due to the timing of the festive season.

On the property management services front, revenue rose 8.9% year-on-year to RM184.1 million from RM169 million, boosted by improvements in occupancy rates and effective rental renewals.

The group did not propose any dividend for the quarter.

For the six-month period ended June 30, AEON's net profit climbed 24.7% to RM85.2 million from RM68.4 million in the same period of FY2023, with revenue up 2.3% to RM2.19 billion from RM2.14 billion.

Looking ahead, AEON managing director Naoya Okada said that the group remains committed to staying resilient and advancing initiatives to meet the demands of the retail sector.

"In celebration of AEON’s 40th anniversary this year, we have lined up a series of promotional events, activities and rewards throughout the year to commemorate this milestone with our customers. These will include attractive product assortments and special events, all designed to offer greater value to our customers. Furthermore, we will also be introducing a greater product assortment across our stores to cater to the diverse needs of our customers,” Okada noted.

He added that the group is also accelerating renovation projects at selected AEON stores and malls in the coming months to enhance the shopping experience.

"This month, we completed upgrades at AEON Bandar Puchong and AEON MaxValu Desa Park City. Facelifts are currently ongoing at AEON Bukit Indah, AEON Tebrau City and AEON Ipoh Station 18. Development plans are also underway to construct a new two-storey mall on a 23-acre site in Seremban.

"We are dedicated to advancing our strategic priorities in both retail and property management services. Our focus includes accelerating digital initiatives, expanding our private brand portfolio, establishing more AEON Living Zones within local communities, driving sustainability efforts and optimising operational costs," Okada added.

Shares in AEON settled four sen or 2.6% lower at RM1.50, giving the company a market capitalisation of RM2.11 billion.