KUALA LUMPUR (May 19): Despite a drop in revenue, AEON Co (M) Bhd's net profit for the first quarter (1Q) ended March 31, 2021 jumped by nearly threefold to RM22.03 million, from RM7.47 million a year ago.

The better earnings were due to an improvement in merchandise gross margin, changes in marketing mechanics, and stringent cost control measures, the group said in a filing with Bursa Malaysia.

AEON said quarterly revenue fell 14.89% to RM1.01 billion, from RM1.19 billion previously.

The group said its retail business revenue fell 14% to RM879 million, from RM1.02 billion a year earlier, due to a decline in revenue, especially from food line and soft line categories.

"The significant decrease compared with the previous year's corresponding quarter was mainly impacted by the festive sales as a result of reintroduced Movement Control Order  (MCO 2.0) by government since Jan 13, followed by various restriction orders thereafter," it said.

AEON said the management continues to look for various possibilities in improving cost efficiency in response to the current market condition.

The group did not declare any dividend for the latest quarter.

AEON Malaysia managing director and chief executive officer Shafie Shamsuddin said that as the group navigates the new normal, it will continue with the positive momentum and strive for greater financial returns in ensuring its stakeholders — employees, customers, partners, shareholders and investors — are well taken care of.

"Notwithstanding the challenges, we will intensify merchandising effectiveness, sharpen our go-to-market strategy, remain nimble with our business delivery to match the shifting market conditions, and forge new collaborations," he said in a statement.

AEON's share price closed six sen or 5.08% lower at RM1.12 today, valuing the group at RM1.66 billion.