With new and renovated stores drawing more revenue, and overseas business improving, Aeon Mall‘s group pretax profit is likely to hit a six-month record.
Sales have grown by about 4 per cent to reach an estimated 20.5 billion yen (US$203 million) for the six months ended in August.
Revenue from tenants is a central profit source for the Japanese mall group, which is under the umbrella of holding company Aeon. Aeon Mall opened three shopping centers in Japan during the half and remodelled others, as well as converting struggling apparel stores into restaurants.
Group revenue rose about 18 per cent to about 132 billion yen, missing the 136.5 billion yen target because of shopping centre closures following the Kumamoto prefecture earthquakes in April.
Meanwhile, overseas losses are expected to shrink. Aeon Mall opened a shopping centre in Vietnam in July, taking the total there to four, while the company’s higher profile in China drew more prestigious tenants to its 12 malls there.
Aeon Mall expects to meet its forecast for the fiscal year ending in February. It sees revenue jumping 22 per cent to 280 billion yen, and operating profit growing 6 per cent to 46.5 billion yen.