Aeon (8267) Q3 2025 earnings summary

Executive summary

• Consolidated operating revenue for the third quarter reached JPY 7,470.5 billion, up JPY 444.7 billion year-over-year, marking a record high for the cumulative nine months for the 13th consecutive year.

• Operating profit was JPY 117.5 billion, down JPY 25.2 billion year-over-year; ordinary profit was JPY 102.0 billion, down JPY 31.0 billion.

• Net loss attributable to owners was JPY -15.6 billion, a decrease of JPY 34.0 billion from the same period last year.

• Retail business underperformed due to weak sales of fall/winter items and seasonal foods, but a recovery began in November, aided by price appeal strategies and sales promotions.

• Company-wide cost control and digital transformation initiatives helped reverse negative sales trends from November, sustaining momentum through December.

• Achieved record-high operating revenue of ¥332.7 billion for Q3 FY2024, up 6.0% year-over-year, driven by strong domestic sales.

• Operating income increased 11.9% year-over-year to ¥38.2 billion, but net income declined 16.5% due to extraordinary losses from business restructuring.

• Domestic specialty store sales at existing malls rose 6.0% year-over-year, with customer traffic up 3.1%.

• Overseas, Vietnam saw profit growth and sales up 7.5%, while China faced profit declines due to new mall openings and closures.

• Operating revenue for the nine months ended November 30, 2024, rose 6.0% year-over-year to ¥332,729 million, with operating income up 11.9% to ¥38,193 million and ordinary income up 9.3% to ¥29,742 million.

• Net income attributable to owners of parent declined 16.5% year-over-year to ¥12,279 million, mainly due to extraordinary losses including impairment and provisions for store closings.

• Comprehensive income dropped 64.7% year-over-year to ¥19,017 million.

Financial highlights

• Third quarter operating revenue: JPY 2.4711 trillion, up JPY 156.6 billion year-over-year.

• Third quarter operating profit: JPY 18.9 billion, down JPY 6.2 billion; ordinary profit: JPY 12.2 billion, down JPY 8.9 billion.

• Net income attributable to owners: loss of JPY -21.1 billion, a decrease of JPY 16.1 billion year-over-year.

• Record high operating revenue for the cumulative third quarter; operating profit was the second highest ever recorded in the previous fiscal year.

• Quarterly net profit turned negative due to lower ordinary profit, absence of prior year one-time gains, and earlier recognition of store closure provisions and impairment losses.

• Operating revenue: ¥332,729 million (+6.0% year-over-year); operating income: ¥38,193 million (+11.9% year-over-year); net income attributable to owners: ¥12,279 million (-16.5% year-over-year).

• Gross profit increased to ¥65,244 million (+10.8% year-over-year); SG&A expenses rose to ¥27,050 million (+9.3%).

• Extraordinary losses surged to ¥7,029 million, mainly from impairment and restructuring costs.

• Cash and cash equivalents at period-end: ¥88,408 million, up ¥17,232 million from the previous year.

• Net income per share was ¥53.96, down from ¥64.64 in the prior year period.

• Total assets reached ¥1,666,297 million, up ¥11,043 million from the previous fiscal year-end.

• Cash and cash equivalents at period-end were ¥88,408 million, a decrease of ¥23,946 million from the previous year-end.

Outlook and guidance

• No changes to the full-year forecast; strong sales momentum in November and December expected to continue into the fourth quarter.

• Anticipates earnings growth in January and a substantial sales increase in Q4, aiming to recover from negative consolidated results and achieve full-year targets.

• Achieving the JPY 270 billion operating profit target for FY2024 is challenging but considered possible if sales and cost control momentum are sustained.

• FY2024 full-year plan: operating revenue ¥453.5 billion, operating income ¥55.0 billion, net income ¥16.5 billion.

• Revised FY2025 operating income target to ¥69.0 billion, down from previous ¥85.0 billion, reflecting slower-than-expected recovery.

• EPS projected to reach a record 151 yen in FY2025.

• Full-year guidance maintained: operating revenue projected at ¥453,500 million (+7.2% YoY), operating income at ¥55,000 million (+18.5%), and net income attributable to owners of parent at ¥16,500 million (-19.1%).

• Annual dividend forecast unchanged at ¥50.00 per share.