KUALA LUMPUR (Aug 27): Aeon Co (M) Bhd swung into a net loss of RM9.56 million or 0.68 sen per share for the second quarter ended June 30, 2020 (2QFY20), as business operations were adversely affected by the COVID-19 pandemic and lockdown restrictions.

The department store and retailer had recorded a net profit of RM7.47 million and earnings per share (EPS) of 0.53 sen in the immediate preceding quarter (1QFY19).

It had also posted a net profit of RM19.45 million and EPS of 1.39 sen a year earlier (2QFY19), according to the group’s filing with Bursa Malaysia.

Aeon said its quarterly revenue shrank 19.9% to RM954.32 million, from RM1.19 billion for 1QFY20, and by 13.2% from RM1.1 billion for 2QFY19.

The group posted a net loss of RM2.09 million for the six-month period ended June 30, against a net profit of RM52.09 million a year earlier. Cumulative revenue sank 7% to RM2.15 billion from RM2.31 billion.

The group attributed its losses to the closure of non-essential tenants, apparel, home and electrical segments which were part of Movement Control Order (MCO) restrictions. These impacted business segments usually contributed 60% of the group’s total revenue.

It added that lower sales commission and temporary space rental receivables from tenants due from adverse impact of MCO also hit its profitability.

Aeon said its retail business’s revenue fell 12.3% to RM810.7 million from RM924.47 million for 2QFY19, while revenue for property management services segment decreased 17.9% year-on-year to RM143.62 million from RM175.02 million.

In a separate statement, Aeon managing director and CEO Shafie Shamsuddin said recent months had been a very tough journey, but he is grateful that the group managed to bounce back in May and June.

On prospects, the group said its key priorities are to provide a safe shopping environment via the personal shopper, home delivery services and the pilot of online virtual mall as well as to have prudent operating and capital expenditure management to protect the group’s profitability.

Aeon’s share price closed 1.75% or 1.5 sen lower at 84 sen, valuing the group at RM1.18 billion. Some 1.36 million shares were traded. Over the past year, the counter has fallen 49% from RM1.65.