Japan’s Aeon more than triples first-half net profit to 13.3bn yen
Japan’s Aeon affiliate United Super Markets Holdings plans about 100 store closures by fiscal 2030, with some outlets potentially becoming drugstores or My Basket shops.
- Japanese retailer Aeon's consolidated net profit for the first half (March-August) reached 13.3 billion yen, which is 3.3 times the amount from the same period a year earlier.
- The significant profit increase was driven by strong performance in its drugstore and Aeon Mall shopping center operations, which offset weakness in its core general merchandise stores.
- Strong results from Tsuruha Holdings, a drugstore operator that became an Aeon subsidiary in January, and lower special losses also contributed to the net profit growth.
- Alongside the profit surge, the company also achieved record first-half sales of 5.9 trillion yen (a 13.8% increase) and a record operating profit of 130.7 billion yen (a 10.7% increase).
Japan’s Aeon Co., Ltd. kept its earnings forecasts for the year ending February 2027 unchanged and reported a sharp increase in first-half net profit on Tuesday (October 13).
Consolidated net profit for March–August amounted to 13.3 billion yen, equivalent to 3.3 times the year-earlier total.
Aeon’s annual forecast for the financial year ending February 2027 includes operating profit of 340 billion yen, up 25.7% from the previous year, and net profit of 73 billion yen, up 0.4%.
Consolidated sales are expected to rise 12.0% to 12 trillion yen.
Conversion into Aeon-operated drugstores or My Basket compact supermarkets is being considered for some outlets facing closure, according to Aeon president Akio Yoshida.
At Aeon affiliate United Super Markets Holdings Inc., plans call for about 100 store closures by fiscal 2030.
The company operates Maruetsu, Kasumi, Inageya and other food supermarkets.
Aeon’s March–August results showed consolidated sales of 5,904.1 billion yen and operating profit of 130.7 billion yen.
Sales rose 13.8% year on year to a six-month record, while operating profit increased 10.7%, achieving a new high for the second consecutive year.
Aeon’s first-half operating profit benefited from strong drugstore and Aeon Mall shopping centre operations, which more than offset weakness in the group’s core general merchandise stores.
Lower special losses also supported net profit growth, alongside strong results at Tsuruha Holdings Inc., a drugstore operator that became an Aeon subsidiary in January.
Aeon recognised 4.1 billion yen in first-half special losses from damage caused by natural disasters, including the powerful earthquake that hit Kumamoto Prefecture in south-western Japan on July 28.
The quake caused an explosion at Aeon Mall Kumamoto in the town of Kashima.
[Copyright The Jiji Press, Ltd.]
