Aeon Store HK revenue rises 15.5% to $4.9b

This was attributed to sales growth, effective business plan, and government grants.

Retail company Aeon Stores’s business in Hong Kong has posted a 15.5% increase in revenue to $4.9b in 2020, from $4.2b the previous year, amidst sales growth, effective business plans, and government grants.

Segment results also improved by $177.1m from a loss of $114.8m in 2019 to a profit of $62.3m in 2020.

“In the year 2020, customers’ consumption behaviour changed significantly. With the majority of the public spending most of their time at home, they have become more aware of the need to improve their living environment as well as overall health and safety,” managing director Isei Nakagawa said.

The company also noted that as more people get vaccinated against COVID-19, consumer sentiment will also recover. They believe that 2021 will be another year of rapid expansion for small speciality stores, as they aim to open the same number of stores as in 2020.

“Since we have already initiated the digital transformation plan at an earlier time, and pushed forward business reforms in a bid to stimulate sales and improve operating efficiency and income structure, we were able to achieve greater improvement this year,” chairman Yuki Habu said.

Overall, the group has registered a 4.9% YoY increase in revenue to nearly $10b, whilst gross profit margin has dropped 1% to 28.9%. Profit loss attributable to owners of the company for the year was $36.8m.

The board also proposed a final dividend of $0.05 per share for the year ended 31 December.