【AEON Performance】 AEON's net loss slightly narrows to 3.2 billion yen last year, no dividends paid. Hong Kong revenue drops 4.1%. Hope to open ten Mono Mono "ものもの" stores this year.

AECON Aeon (00984) Last year, net loss slightly narrowed to 320 million yuan, with an adjusted EBITDA loss of 280 million yuan. Revenue decreased by 3.7% to 7.8 billion yuan, and gross profit margin declined by 0.5 percentage points to 28.4%. AEON stated that, considering factors such as financial performance, cash flow conditions, business status and strategy, future operations and earnings, as well as capital requirements and expenditure plans, it has decided not to declare a dividend.

The group’s capital expenditure last year for opening new stores in Hong Kong and China, refurbishing existing stores, and upgrading information technology systems amounted to 180 million yuan. AEON expects to spend 110 million yuan this year on opening new stores and refurbishing existing ones.

AEON continues to accelerate the expansion of small specialty stores

Last year, revenue from Hong Kong operations fell approximately 4.1% to 3.59 billion yuan. AEON indicated that this year, Hong Kong business will focus on enhancing its market uniqueness and strengthening its competitive edge by optimizing its own-brand product offerings and increasing sales efforts. It aims to serve as a profit growth engine, while adding product categories currently lacking based on the needs of its target customers, and providing exclusive products tailored to them.

AEON will continue to accelerate the expansion of small specialty stores, with a target to open 10 AEON Mono Mono “ものもの” stores by 2026. It will further strengthen profitability through improved product mix, supply chain, and promotional activities. Facing rising fixed costs, the group will focus on improving inventory management and turnover efficiency to boost gross profit margin and cash flow.

Revenue from Mainland China also declined by 3.4% to 4.2 billion yuan. AEON stated that, in addition to continuing to expand its supermarket business to increase market share, the group aims to establish a low-cost operating model, relying on existing TOPVALU products as the foundation of its stores, and simultaneously develop new products to build competitive advantages in both price and quality. The group plans to open three supermarkets next year.

Source: HKEX announcement

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