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 | ||||
Copyright 2024 AEON CO., LTD. All Rights Reserved.
1
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 | |
0
-20-4.3
-40
-60 | -53.9 | ||||
19.1Q | 20.1Q | 21.1Q | 22.1Q | 23.1Q | 24.1Q |
Copyright 2024 AEON CO., LTD. All Rights Reserved.
2
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 | ||||
Copyright 2024 AEON CO., LTD. All Rights Reserved.
3
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
Copyright 2024 AEON CO., LTD. All Rights Reserved.
5
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 | 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 | 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 | |||||||||||||||||||||
*1 | Including the impact of transferring to the TOPVALU Collection | ||||||||||||||||||||
*2 | Daily 11 categories, Delicatessen 2 categories *3 | Including the impact of the minimum wage revision | *4 A tool for sharing information via digital signage | Copyright 2024 AEON CO., LTD. All Rights Reserved. | 6 | ||||||||||||||||
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
7
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
Copyright 2024 AEON CO., LTD. All Rights Reserved.
8
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 | Category | YoY | ||||||||||
+6.0 | ||||||||||||
FY24 | FY23 | FY22 | OTC products | 97.6 | ||||||||
Cosmetics | 103.0 | |||||||||||
+4.0 | Household goods | 103.4 | ||||||||||
Food products | 104.1 | |||||||||||
+2.0 | Others | 92.6 | ||||||||||
Total sales of | 101.1 | |||||||||||
products | ||||||||||||
+0.0 | Dispensing | 106.8 | ||||||||||
Mar | Apr | May | Jun | |||||||||
Subtotal | 102.2 | |||||||||||
Operating profit +/- factors | (Billion yen) | |||||||||||
Copyright 2024 AEON CO., LTD. All Rights Reserved.
9
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AEON Co. Ltd. published this content on 12 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 July 2024 08:25:14 UTC.