Aeon reports modest H1

Date : 01 November 2016

Japanese leading retailer Aeon has seen its revenue edge up 0.9% to JPY 4,112bn (US$39.2bn), for the six months ended 31 August, while its operating profit improves slightly by 0.1% to JPY72.4bn(US$0.69bn).

Performances vary by format

Aeon’s convenience store business records that its operating income has increased by 6.1% on operating revenues of JPY190.6bn (US$1.8bn), up 7% year on year for the first six months of the fiscal year. The group’s Ministop and My Basket operations performed strong thanks to the enhanced merchandise selection and improved services.

Its Drugstore and Pharmacy business also registered 5.8% uplift in revenue. The Welcia banner increased the number of 24 hour stores to enhance customer convenience and therefore saw steady growth in same-store sales.

On the other hand, the Supermarket and Discount Store business posted a 7% decline in revenue of JPY1, 448.5bn (US$13.8bn). This was mainly due to the impact of the transfer of Daiei’s stores.

Finally, the Aeon’s General Merchandise Store business suffered a significant loss, amid weak consumer spending in Japan.

Challenges in the international markets

The International Business has posted operating revenue of JPY205.3bn (US$1.96bn), down 5.4% year on year. In particular, Aeon China has seen improvement in China and Hong Kong after the group completed refurbishment of its flagstones which helped strengthen the business foundation in China and bolster earrings. In the reporting period, the group also expanded further in ASEAN markets and opened a new store in Malaysia and Vietnam respectively.

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