AllHome Corporation, the pioneering one-stop shop home store in the Philippines, reported a lower net income for the first nine months of 2020 but saw a surge in third quarter earnings from the previous three month period.
In a disclosure to the Philippine Stock Exchange, AllHome said net profit was at P588 million for the first nine months of 2020, down by 21.2 percent versus the same period last year due to the lockdown-affected low performance in the second quarter.
Comparatively, the net income generated in the third quarter of P312 million was much higher compared the P5 million net profit in the second quarter.
AllHome registered P3.47 billion sales for the third quarter of 2020, a 133 percent increase from the second quarter of the same year.
The firm said these improvements are brought by the opening up of the Philippine economy and easing of quarantine restrictions in the third quarter, generating a total of P8.33 billion in sales for the first nine months of 2020, an increase of about 2 percent from the same period last year.
The company maximized its 7 categories to generate sales with the soft categories compensating for the dip in hard category sales. Gross margin improved to 31.3 percent from 29.7 percent for the same period last year.
“We remain bullish with the home improvement industry for the remaining months of the year. The level of sales has greatly improved in the third quarter and, in AllHome’s case, our fourth quarter sales historically are our highest, benefiting from the holiday season,” said AllHome Chairman Manuel B. Villar, Jr.
He added that, “The improvement in our performance is driven primarily by the opening up of the economy which resulted in more people visiting and buying at our stores across the country.”
AllHome Vice Chairman Camille A. Villar said “AllHome continues to improve its optimization of online channels to generate more sales and build relationships with our customers.”
She noted that, “Now that we see more people in our stores, our safety policies and guidelines are more important than ever, both for employees and customers. AllHome sees to it that basic health protocols are strictly followed.”
AllHome’s seven categories and diversified brand portfolio cushioned the impact of the pandemic to sales. Appliances contributed 31 percent of sales while the entire soft category contributed 61 percent of sales for the first nine months of 2020.
Continued expansion of in-house brands has contributed to its improved sales contribution and increase in profit margin by 7.1 percent, aside from negotiation gains from store network expansion.
AllHome shows no sign of slowing down despite the pandemic, opening two stores in September and October, raising its store count to 47. This is a testament to the Villar Group’s proven capability to fast-track the construction as it sees fit.
The company will open two more stores, bringing the total company’s store network to 49 by the end of 2020.
“Last August we mentioned that we were not looking at opening new stores for the rest of 2020 as we were evaluating the impact of the pandemic,” said AllHome President Benjamarie Therese Serrano.
She noted though that, “We have seen marked improvements in our sales on a weekly basis which gave management the confidence to open four new stores for the year. Our ability to quickly adjust our store expansion program is attributable to our collaboration with the Villar Group in terms of captive customer base, store locations and execution capability.”