AEON STORES (00984) announced its 2025 interim results, reporting revenue of approximately HK$3.931 billion, representing a 3% decrease year-on-year. The company recorded a net loss attributable to owners of approximately HK$217 million, representing a 27% increase compared to the same period last year. Loss per share was HK$0.8361.
The group's Hong Kong operations recorded a 5.97% decline in revenue to HK$1.784 billion during the first half of the year. The Hong Kong business reported a loss of HK$162 million (first half of 2024: loss of HK$144.3 million). However, excluding foreign exchange factors, the adjusted loss for Hong Kong operations was HK$141 million (first half of 2024: adjusted net loss of HK$155.6 million), representing a 9.5% improvement compared to the same period last year.
The adjusted metrics are calculated by deducting foreign exchange gains and losses from the period loss. Management believes that excluding foreign exchange gains and losses provides a better reflection of core business operational efficiency performance and helps investors assess the business's continued improvement trend.
During the review period, the mainland China segment saw a slight improvement in gross margin, primarily due to a significant increase in private label sales. Online sales also achieved year-on-year growth, demonstrating the effectiveness of the group's e-commerce strategy.
The group responded flexibly to market changes and capitalized on the trend of Hong Kong residents traveling north for consumption. During the period, five new independent supermarkets were opened, including stores in Shenzhen Longgang Renheng, Foshan MixC, Guangzhou Hengbao, Guangzhou Link REIT, and Guangzhou City Light Plaza. These new locations continue to win the favor and support of new and loyal customers in the Greater Bay Area, further expanding the group's market presence in the region.
Additionally, the group actively reviewed the performance of various stores, closing the Shenzhen Baoan store and completing the lease renewal for the Guangzhou Tianhe store to optimize the store network layout and enhance overall efficiency.