Financial Results Overview
FY2023 Results
For the fiscal year ending February 29, 2024, AEON CO., LTD. (hereinafter “AEON”) posted consolidated operating revenue of 9,553,557 million yen (up 4.8% year-on-year), operating profit of 250,822 million yen (up 19.6% year-on-year), ordinary profit of 237,479 million yen (up 16.6% year-on-year), which marked record highs. Profit attributable to owners of the parent made a remarkable increase to 44,692 million yen (up 109.0% year-on-year).
- Operating Results(new window.)
- Consolidated Statement of Income and Comprehensive Income(new window.)
Regarding business segments, all reportable segments recorded an increase in operating revenues. The GMS (General Merchandising Store) Business, Supermarket Business, and Discount Store Business, which are the components of our core Retail Business, achieved increases in operating profits as a result of product-oriented reforms that placed the private brand (PB) TOPVALU at the center of its strategy, productivity improvement through the use of digital transformation (DX), and cost control efforts centered on profit structure reforms. Operating profit also increased in the Shopping Center Development Business and the Services and Specialty Store Business, which recovered customer traffic due to the normalization of social and economic activities. Conversely, profit decreased in the Financial Services Business, mainly due to an increase in the provision of allowances for doubtful accounts, which aligned with the balance of operating receivables. The International Business, marked by the deteriorating macroeconomic environment in the region, also reported lower earnings. Additionally, the Health & Wellness Business experienced a decline in demand for COVID-19-related products, contributing to reduced profitability.
Consolidated assets as of February 29, 2024, were 12,940,869 million yen, an increase of 599,346 million yen, or 4.9%, from the end of the previous fiscal year (February 28, 2023). The increase is mainly attributable to increases of 200,776 million yen in loans and bills discounted for banking business,160,048 in securities, 113,543 million yen in property, plant and equipment, 79,665 million yen in notes and accounts receivable-trade, 57,009 million yen in operating loans receivable, 38,956 million yen in investment securities, and which offset a 144,189 million yen decline in million yen in cash and deposits, among other factors.
Consolidated liabilities as of February 29, 2024, were 10,853,667 million yen, an increase of 482,377 million yen, or 4.7%, from February 28, 2023. The increase is mainly attributable to increases of 141,028 million yen in deposits for banking business, 88,291 million yen in long-term loans payable (including the current portion of long-term loans payable), 50,000 million yen in commercial papers, 45,106 million yen in bonds, which offset a decline of 15,855 million yen in contract liabilities, among other factors.
Consolidated net assets as of February 29, 2024, were 2,087,201 million yen, an increase of 116,968 million yen, or 5.9%, from February 28, 2023.
The balance of cash and cash equivalents as of February 29, 2024, was 1,064,093 million yen, a decrease of 150,368 million yen, or 87.6%, from February 28, 2023.
Net cash provided by operating activities was 365,871 million yen, a decrease in cash provided of 67,838 million yen, or 84.4% year-on-year. The decrease in cash provided is mainly attributable to an increase of 145,270 million yen in loans receivable in the banking business, and a decrease of 77,730 million yen in deposits in the banking business, which offset an increase from 125,374 million yen decrease in cash in notes and accounts receivable-trade.
Net cash used in investing activities was 506,260 million yen, an increase in net cash used of 171,174 million yen, or 151.1% year-on-year. This increase in cash used is mainly attributable to a decrease of 177,491 million yen in proceeds from sales and redemption of securities in banking business, and an increase of 25,388 million yen in the purchase of non-current assets, which offset a decrease of 22,103 million yen in the acquisition of securities in the banking business, and others.
Net cash used in financing activities was 15,867 million yen, an increase in cash used of 17,720 million yen year-on-year. The increase in expenditures is attributable to a decrease of 39,834 million yen in proceeds from long-term loans payable and an increase of 25,166 million yen in the purchase of investments in subsidiaries not involving a change in the scope of consolidation, which offsets an increase of 46,927 million yen from the issuance of bonds.
FY2024 Forecast
| FY2024 (Forecast) |
FY2023 (Results) |
|
|---|---|---|
Operating Revenue (Million yen) |
9,400,000 | 9,116,823 |
Operating Profit (Million yen) |
220,000 | 209,783 |
Ordinary Profit (Million yen) |
210,000 | 203,665 |
Profit Attributable to Owners of the Parent (Million yen) |
25,000 | 21,381 |
Dividend per share(yen) |
20 at Q2 end 20 at Q4 end 40 for full year |
18 at Q2 end 18 at Q4 end 36 for full year |
For operating results in the fiscal year ending February 28, 2025, AEON will work to improve profitability by soundly executing the five growth strategies set forth in the AEON Group Medium-term Management Plan (FY2021 – FY2025) (accelerate and evolve the shift to digital, create unique value with a supply chain-focused outlook, evolve health and wellness in response to the new era, create the “AEON Living Zone”, and further accelerate the shift to Asian markets), and is aiming to achieve record-high operating revenue, operating profit, and ordinary profit. Although forecasts by segment will not be disclosed, AEON is targeting profit growth in all segments. The forecast considers foreseeable environmental changes, inflation, rising electricity costs, the 2024 logistics issue, wage increases, and the effects of countermeasures. While segment-specific earnings forecasts are not disclosed, profit growth is anticipated across all segments.
The Company plans to issue an annual dividend of 40 yen per share, comprising a regular dividend of 36 yen per share and a commemorative dividend of 4 yen per share for the 50th anniversary of the Company's listing.