AEON CO. (M) BHD Financial Update: Second Quarter Results

On August 25, 2025, AEON CO. (M) BHD, the Malaysian subsidiary of Japan’s largest retailer, reported a significant decline in its second-quarter net profit, marking its lowest performance in nearly two years. The company’s net profit fell by 55.9% year-on-year to RM12.27 million for the three months ending June 30, 2025. This downturn is attributed to a weaker retail performance, primarily due to the absence of major festive celebrations during the period.

Revenue for the quarter also saw a decline, dropping 2.1% year-on-year to RM999.65 million from RM1.02 billion in the same quarter the previous year. The retail business experienced a 3.8% decrease in revenue, falling to RM805.4 million. However, this was partially offset by a 5.5% increase in property management services revenue, which rose to RM194.2 million.

For the first half of 2025, AEON CO. (M) BHD’s cumulative net profit decreased by 5.71% to RM8.037 million, while total revenue increased by 2.57% to RM22.441 billion. The company’s property management services continued to show growth, with a 7.4% increase in revenue, reaching RM3.986 billion, driven by higher tenant occupancy and renewal rates. Meanwhile, retail business revenue grew by 1.6% to RM18.458 billion.

Despite the challenging quarter, AEON CO. (M) BHD remains optimistic about the future. The company anticipates a gradual recovery in Malaysia’s retail sector, supported by stable consumer confidence and government support measures. However, it acknowledges ongoing cost pressures, including the expansion of the Sales and Services Tax (SST) and rising utility expenses, which may compress operating margins in the short term.

In response to these challenges, AEON CO. (M) BHD is committed to strengthening its business foundation and enhancing customer value. The company plans to expand its own-brand product offerings, accelerate digital transformation, optimize tenant mix, and maximize the value of its retail spaces to boost foot traffic.

Overall, AEON CO. (M) BHD is maintaining a cautious yet optimistic outlook, focusing on strategic initiatives to sustain competitiveness and create long-term value.