AEONTS’ 1Q21 Earnings Jump 116% with Lower Provision for Covid-19 in the Quarter

Aeon Thana Sinsap (Thailand) Public Company Limited (AEONTS) has announced its 1Q21 financial statement ended May 31, 2021, through the Stock Exchange of Thailand as follows;

In the 1Q21 financial statement ended May 31, 2021, AEONTS reported a net profit of 1,149 million baht, increased 116.83% from a net profit of 530 million baht in the same period of last year.

The increase in net profit was the result from higher provision in the first quarter of 2020 with probable forward looking risk factors due to COVID-19 situation. Net profit was mainly contributed by continued growth of bad debt recovery and efficiently controlling the operation cost.

 

In the first quarter of 2021 ended May 31, 2021, the total consolidated revenues were 5,041 million baht, decreased 615 million baht or 11% YoY. This was due to an impact of the third wave of the COVID-19 pandemic, which is presently spreading rapidly and appeared almost uncontrollable, coupled with a higher household debt.

In the first quarter of 2021, credit card sales accounted for 63% of total turnovers with revenue of 1,550 million baht, a decrease of 188 million baht or 11% YoY, mainly resulted from a reduction in interest rate for credit card by 2%, which effective in 1st August 2020 and decreasing of credit card spending due to the impact of the COVID-19 pandemic. However, credit card revenue was 31% of total revenues.