Japanese retail giant Aeon said today (18 March) that it anticipates posting a higher net profit for its current fiscal year, despite lowering its sales guidance.
The company said that it sees net profit for the year ended 28 February totalling around JPY23.5bn (US$260m), up from its previous forecast of JPY7.5-15bn.
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The revision, Aeon said, was the consequence of a special profit of about JPY10bn due to the overhaul of its pension system.
The company has halved its projected pension payout rate from 5% to 2.5% and pushed the pension eligibility age back from 60 to 65.
The one-off gain will offset expected lower sales in the year. Aeon said that it now expects group revenue to total JPY5.05trn, down from its previous outlook of JPY5.24trn.
The company has seen sales hit as the weak economy and concerns about job security have prompted Japanese consumers to reduce their spending.
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By GlobalData
