Aeon : FY2024 1Q Presentation Materials(1,175KB)(new window. for pdf file.)

July 12, 2024 at 04:26 am

FY2024 1Q

Presentation Materials

AEON CO., LTD

July 12, 2024

Consolidated Results

Continuous increases in operating revenue have reached a record high.
Operating revenue and quarterly net income attributable to parent company shareholders were generally in line with expectations.

Consolidated Results

(Billion yen)

1Q Results

	FY2024 1Q	FY2023 1Q	YoY %	Change

Operating revenue	2,449.2	2,324.7	+5.4%	+124.4

Operating profit	47.7	51.4	-7.1%	-3.6

Ordinary profit	45.3	48.1	-5.7%	-2.7

Profit attributable to owners	5.1	17.7	-71.1%	-12.6
of the parent company

Consolidated Results

Operating revenue increased for the fourth consecutive Q1 in each fiscal year, breaking records.
Operating profit and ordinary profit were at the second highest level after the previous year, which was the highest ever.

Operating revenue				(Billion yen)
2,500						2,449.2
2,400					2,324.7
2,300				2,203.2
2,200			2,153.2
2,116.3	2,076.2
2,100


2,000
	19.1Q	20.1Q	21.1Q	22.1Q	23.1Q	24.1Q

Ordinary profit/loss				(Billion yen)
90
60			40.3	44.3	48.1	45.3

30	24.2

0
-30		-16.0
	19.1Q	20.1Q	21.1Q	22.1Q	23.1Q	24.1Q

Operating profit/loss			(Billion yen)
60				43.8	51.4	47.7
			39.1

40
27.7

20
0
-20		-12.5
	19.1Q	20.1Q	21.1Q	22.1Q	23.1Q	24.1Q

Profit/loss attributable to owners of	(Billion yen)
the parent company
40
20	19.3	17.7
5.0	5.1

-20-4.3

-40

-60	-53.9
19.1Q	20.1Q	21.1Q	22.1Q	23.1Q	24.1Q

Results by Segment

Operating revenue: Year-on-year increase in all segments other than the Services & Specialty Store Business
Operating profit: Year-on-year increase in the Financial Service, Shopping Center Development, International, Services & Specialty Store, and Discount Store Businesses

Results by Segment					(Billion yen)
		Operating revenue	Operating profit

		Amount	YoY	Amount		YoY

	General Merchandising Store	853.9	+1.5%	-3.4		-4.6
	(GMS)

	Supermarket (SM)	731.7	+10.1%	3.6		-2.6
S
Discount Store (DS)	100.4	+0.9%	1.9		+0.2
e


g	Health & Wellness	317.9	＋6.1%	5.3		-1.8
m
Financial Services	127.1	＋9.8%	14.9		+5.4
e
n	Shopping Center Development	121.8	＋4.3%	15.7		+1.7
t
	Services & Specialty Store	179.9	-0.3%	5.9		+0.4

	International	142.2	+7.6%	3.9		+0.7

	Others	15.2	+16.6%	-2.4		-0.4

	Adjustment amount	-141.5	-	2.1		-2.8

	Consolidated total	2,449.2	+5.4%	47.7		-3.6

Results by Segment (1Q)

General Merchandising Store (GMS) Business

Amid sluggish consumption and a growing frugal mindset due to continued inflation and negative real wages, existing stores exceeded their targets from sales promotion efforts.
A significant decrease in profits due to the disappearance of revenge spending after "COVID-19" and the use of points granted by the government to recipients of the My Number Card.
Prompting strengthened product and pricing strategies in the second quarter

Segment operating profit/loss*¹	Operating profit/loss +/-*²（Figures by company）
（Billion）

（Billion yen）

5.0
	0.1	1.1
0.0

-5.0		-3.4
	-5.4
-10.0	-7.2

-15.0			Same-store sales, YoY*³	（％）	Operating profit/loss +/- factors（Billion）

-20.0				Apparel
		+10	Food
			Home Furnishing
				H&BC
-25.0			+5	Total


-30.0			+0
	-31.9		-5
-35.0			Apr	May	Jun
19.1Q 20.1Q 21.1Q 22.1Q 23.1Q 24.1Q	Mar

			-10

*1 Prior year results were adjusted for reportable segment transfers

*2 AR:AEON Retail (separate), AK:AEON KYUSHU (cons.), AH:AEON Hokkaido (separate), AT:AEON Tohoku (separate), CAN:CANDO (cons,., segment changed), Sun: SUNDAY (cons.) *3 GMS major 14 companies included

GMS Business, AEON Retail

Focusing on price strategy to secure market share
Still room for improvement in the gross profit mix due to a backlash from pent-up demand after COVID-19, despite increased sales promotion efforts.
Continuous profit structure reforms and productivity improvements through the use of AI tools

Operating profit/loss

（Billion yen）

Operating loss +/- factors

（Billion yen）

10.0
0.0				0.2

-10.0	-4.6				-1.8	-3.2
	-8.0


-20.0
-30.0		-28.4

-40.0	19.1Q	20.1Q	21.1Q	22.1Q	23.1Q	24.1Q

Same-store sales YoY

（%）

Progress in MTP and structural reforms, Impact of cost increase

+15.0

Apparel

Food

TOPVALU sales

103.4%

Man-hour productivity

102.2%

YoY

Home Furnishing

H&BC

+10.0

Total

Inventory *¹

¥124.4 bn

Wage increase YoY

+¥2.2 bn*³

Change from previous

+¥1.5 bn

Year-End

+5.0

Tenant rent revenue

+¥0.1 bn

Utility cost increase

- ¥2.5 bn

YoY

+0.0

Sales in EC channel

107.6%

Online supermarket

100 stores

YoY

Warehouse robotics

-5.0

Regi Go

218 stores

AI work

326 stores

(Full self-checkout)

MaI board *⁴

-10.0

AI order *²

337 stores

AI kakaku

Delicatessen 347stores

Mar

Apr

May

Jun

(AI price)

Daily 323 stores

Among 369 stores in AEON Retails at the end of May 2024

Including the impact of transferring to the TOPVALU Collection

Daily 11 categories, Delicatessen 2 categories *3

Including the impact of the minimum wage revision

*4 A tool for sharing information via digital signage

Supermarket (SM) Business

Profit increased in Maxvalu Tokai, My Basket, and the newly consolidated Inageya also contributed.
Offsetting the impact of cost increases by boosting sales and gross profit margins through the expansion of TOPVALU and regional PB, and enhancing productivity through DX initiatives.

Segment operating profit/loss*¹（Billion）

18.0
16.0		15.5
14.0
12.0
10.0
8.0
					6.2
6.0			5.2
4.0				3.3		3.6

2.0
0.0
-2.0	-1.1
	19.1Q	20.1Q	21.1Q	22.1Q	23.1Q	24.1Q

Operating profit +/-（Figures by companies）*² *³

（Billion yen）

0.0

Same-store sales in major		Operating profit +/- factors	（Billion yen）
companies YoY *⁴	（％）

	Sales
	No. of customers
+6.0	No. of items purchased per customer
	Avg. unit price

+4.0

+2.0

+0.0

-2.0

-4.0

Mar

Apr

May

Jun

*1 FY2019 and FY2020 results were adjusted for transfers between reportable segments

*2 Results of FUJI, U.S.M.H, MAXVALU Tokai, MINISTOP, and Inageya are consolidated results in each group. Data of Inageya, Daiei, and My Basket are non-consolidated results. *3 Figures of Inageya indicate the consolidated amount to AEON from Jan. to Mar. 2024

*4 SM major 13 companies included

Discount Store Business

Increased revenue and profits through the establishment of a dedicated PB and DS format with low-cost operations.
The PMI of the new AEON Big is progressing smoothly, and the company aims to open double- digit numbers of stores from 2025 onwards while strengthening its structure.

Segment operating profit/loss （Billion）

2.5
2.0	1.9
1.6	1.6
1.5
1.0

Operating profit +/-（Figures by company）

（Billion）

0.0

0.5	0.4
0.0
		0.0


-0.5
	-0.6
-1.0	19.1Q 20.1Q 21.1Q 22.1Q 23.1Q 24.1Q

Same-store sales YoY （％）

		Sales

		No. of customers

		No. of items purchased per customer
+10.0		Avg. unit price


+5.0
+0.0

-5.0
-10.0	Mar	Apr	May	Jun

Operating profit +/- factors （ Billion ）

0.0

Health & Wellness Business

Revenue increased due to the expansion of PB and store dispensing prescription drugs, as well as increased purchases from visitors to Japan
A new loyalty program was introduced; The number of stores ceasing cigarette sales reached 1,000
TSURUHA, WELCIA, and AEON share the "Ideal Image" of the drugstore alliance, and discussions on integration are progressing.

Segment operating profit （Billion yen）

12.0
10.0	9.9

8.0	7.5	7.4	7.1
	7.0
6.0			5.3

4.0
2.0
0.0	19.1Q 20.1Q 21.1Q 22.1Q 23.1Q 24.1Q

Same-store sales of WELCIA HD, monthly transition and

（%）

YoY by category

Delayed Japan Exchange Other stock markets 22:30:00 2024-07-15 EDT			5-day change	1st Jan Change
3,324 ^JPY	-1.66%		-3.93%	+5.49%

07-11	AEON Retail's All-Store Sales Rise 7.1% in June	MT
07-08	London stocks subdued as non-life insurers offset resource sector slide	RE

AEON Retail's All-Store Sales Rise 7.1% in June	07-10	MT
London stocks subdued as non-life insurers offset resource sector slide	07-08	RE
European shares climb as investors undeterred despite French polls outcome	07-08	RE
London stocks weighed down by commodity-linked stocks; Britvic gains	07-08	RE
Ocado builds on Aeon partnership with plans for third robotic warehouse	07-08	RE
Japanese executive among 11 arrested in Myanmar for inflating rice prices	06-30	RE
AEON Sets Terms for Newly Issued Sustainability Linked Bonds	06-28	MT
AEON Finalizes Issue Price for 22nd Series of Stock Acquisition Rights	06-23	MT
Aeon's All Store Sales Slips 0.3% in May	06-11	MT
Aeon Buys Two Land Parcels for MYR103 Million	06-05	MT
Aeon to Issue Sustainability Linked Bonds in July	06-04	MT
AEON REIT Renews Tenancy Agreement with AEON CO. (M) for Taman Universiti Shopping Centre in Malaysia	05-29	MT
Inageya to Book Extraordinary Income of 1.62 Billion Yen in Fiscal 2025 After Share Transfer Agreement with Aeon and Welcia	04-22	MT
United Super Markets Holdings to Share Exchange with Inageya Effective November	04-19	MT
Aeon's Sales Grow 5% in March	04-11	MT
Aeon to Renew 'Poison Pill' Strategy	04-11	MT
Aeon Co's Profit Soars 109% in Fiscal 2024 as Revenue Grows 5%	04-10	MT
Transcript : Aeon Co., Ltd., 2024 Earnings Call, Apr 10, 2024	04-10
Aeon Co., Ltd. Reports Impairment Loss for the Fourth Quarter of the Fiscal Year Ended February 29, 2024	04-10	CI
Aeon Co., Ltd. Revises Consolidated Earnings Guidance for the Fiscal Year Ended February 29, 2024	04-10	CI
Shares in Japan's Ain soar after activist fund Oasis buys 9.6% stake	03-05	RE
UK online supermarket Ocado forecasts stronger growth	02-29	RE
Aeon Co. Plans to Merge Japan Drugstore Unit Welcia With Rival Tsuruha -- 2nd Update	02-28	DJ
Aeon Co. Plans to Merge Japan Drugstore Unit Welcia With Rival Tsuruha -- Update	02-28	DJ
Aeon Co. Plans to Merge Japan Drugstore Unit Welcia with Rival Tsuruha	02-28	DJ

	1st Jan change	Capi.
AEON CO., LTD.	+5.49%	18.33B
KROGER CO. (THE)	+14.02%	37.89B
LOBLAW COMPANIES LIMITED	+29.47%	37.26B
SYSCO CORPORATION	-1.82%	35.94B
AHOLD DELHAIZE N.V.	+9.82%	29.44B
TESCO PLC	+8.67%	28.35B
WOOLWORTHS GROUP LIMITED	-7.33%	28.34B
GEORGE WESTON LIMITED	+26.70%	20.29B
CP ALL	+1.79%	14.24B
METRO INC.	+15.91%	13.12B

Aeon Co., Ltd.

Equities

8267

JP3388200002

Food Retail & Distribution

Aeon : FY2024 1Q Presentation Materials(1,175KB)(new window. for pdf file.)

Latest news about Aeon Co., Ltd.

Chart Aeon Co., Ltd.

Company Profile

Income Statement Evolution

Ratings for Aeon Co., Ltd.

Analysts' Consensus

EPS Revisions

Quarterly earnings - Rate of surprise

Sector Other Food Retail & Distribution