KUALA LUMPUR (Aug 26): Aeon Co (M) Bhd doubled its net profit to RM19.45 million for the second financial quarter ended June 30, 2019 (2QFY19), from RM9.79 million a year earlier, due to the absence of impairment losses at an associate, which had impacted its results in the previous year’s corresponding quarter.

Its quarterly revenue grew 3% to RM1.1 billion, from RM1.06 billion a year earlier.

The retail business segment achieved a 3% year-on-year increase in revenue to RM924.5 million, mainly due to contributions from newly-renovated stores and specialty shops, as well as a new store which was opened in January 2019.

For the first half of its financial year (1HFY19), cumulative net profit stood at RM52.09 million, a 38% jump from RM37.73 million in the corresponding period a year earlier, while revenue increased 6% to RM2.31 billion from RM2.18 billion.

While the Malaysian economy saw better-than-expected growth in the second quarter, the group expects conditions to soften in the second half of the year, due to both internal and external factors, including the global trade disputes.

“As such, the board expects the performance for the current year to remain challenging,” it said.

Aeon said the retail business will continue to refurbish its selected stores and employ appropriate marketing and pricing strategies, merchandise assortment reformation, maintaining quality customer service and operational efficiency efforts.

Meanwhile, the group expects occupancy and rental rates for its property management services to remain challenging.

“The company will continue to leverage on its competitive strengths to draw customer traffic to its malls, so as to continue maintaining its position as a shopping destination,” it said.

Aeon fell 8 sen or 4.57% to RM1.67 today, giving it a market capitalisation of RM2.34 billion.