$AEONCR (5139.MY)$ announced that it has posted a 15.5% growth in revenue with RM562.00 million in third quarter of FYE25 as compared to RM486.51 million of the preceding year corresponding quarter. This it said was underpinned by a 16.2% increase in total transactions and financing volume to RM2.12 billion in Q3FYE25 as compared to the preceding year's corresponding quarter driven by strong performance in personal financing, automobile financing and credit card business.
For the quarter under review, Operating Profit was RM103.03 million subsiding by 7.5% as compared to the preceding year's corresponding quarter. The lower operating profit SEON said was mainly attributed to higher operating expenses, resulting from increased transaction volume and promotion expenses as well as increased impairment losses on financing receivables in the absence of a general provision reversal.
Profit before tax stood at RM87.85 million, after accounting for share of losses of RM15.18 million from AEON Bank (M) Berhad, an associate company of AEON Credit. As a result, AEON Credit recorded a profit after tax of RM62.07 million in Q3FYE25 down nearly 30% compared to RM85 million in Q3FY24.
For the nine-month period ended 30 November 2024 ("9MFYE25"), AEON Credit recorded a 14.8% growth in transaction and financing volume, reaching RM6.25 billion compared to RM5.40 billion in the preceding year's corresponding period ("9MFYE24"). Correspondingly, gross financing receivables rose to RM13.67 billion, an increase of RM1.76 billion from 30 November 2023. This growth was primarily driven by increased utilisation of digital onboarding solutions, effective marketing campaigns and collaboratives activities within AEON Group.
In line with the increase in total transactions and gross financing receivables, total operating income for 9MFYE25 was registered at RM1.79 billion, reflecting a 15.2% growth as compared to RM1.56 billion in the preceding year's corresponding period.
The Non−Performing Loans ("NPL") ratio has reduced to 2.42% as of 30 November 2024 as compared to 2.73% as of 30 November 2023, attributed to effective credit management and continuous monitoring underperforming portfolio.
Operating Profit for 9MFYE25 was recorded at RM379.32 million, compared to RM402.58 million in the preceding year's corresponding period. The decrease was mainly attributable to an increase in impairment losses on financial receivables of RM116.42 million and higher other operating expenses of RM89.39 million, partly in line with increased transaction and financing volume. This is offset by the incremental increase in revenue of RM214.77 million.
The group expects to be able to maintain its business momentum by implementing the appropriate measures for the financial year ending 28 February 2025.
