AllHome Corp., the country’s pioneering one-stop shop home store, reported a 65 percent surge in net income to P973 million in the first nine months of the year despite intermittent pandemic lockdowns throughout the period.
In a disclosure to the Philippine Stock Exchange, the firm said it posted a 22 percent growth in its net sales for the first nine months of 2021 to P10.13 billion from P8.33 billion in the same period last year.
Gross profit improved by 33 percent over the same period last year, with gross profit margin steadily increasing by 290 basis points to 34.2 percent from 31.3 percent. EBITDA grew by 32 percent to P2.36 billion.
While third quarter of this year saw a reimplementation of lockdowns, AllHome stores remained open, operating on shortened hours in aid of government pandemic efforts.
AllHome’s third quarter stand-alone performance this year was also higher, with net sales of P3.4 billion or an improvement of 9 percent from P3.13 billion in the second quarter of 2021. EBITDA by grew 13 percent, and corresponding net income increase of 12 percent.
AllHome President Benjamarie Therese Serrano, said “The pandemic has made operations very challenging. However, we managed to properly navigate the challenges to our operations and remain resilient in a difficult time for our country.”
“Our first nine months of 2021 result is already about 30 percent higher from pre-pandemic levels in the first nine months of 2019, with sales at 24 percet growth, EBITDA at 27 percent growth, and net income after tax at 30 percent growth,” she added.
Serrano said “We remain optimistic with the industry as more Filipinos become vaccinated, the economy opening up and the pandemic situation eases. Given these, in terms of our expansion program, we have already opened 5 stores as of end of September and we are looking at opening a number of new stores in the 4th quarter which will bring us closer to our at least 100 store target by 2026.”
“AllHome’s inherent innovative nature fueled its ability to quickly adapt to the COVID-19 pandemic”, said AllHome Chairman Manuel B. Villar who emphasized the Company’s relentless pursuit of sales growth and margin improvement.
He added that, “Our team continuously evaluates our strategies and implement operational efficiency initiatives to maximize earning potential and minimize costs.” The Company implemented various programs such as strategic pricing and increase in-house brand sales contribution to improve its margins. It also implemented operational efficiency initiatives in view of changing customer shopping behavior.
This resulted in the optimization of store capacity and the re-purposing of portions of store space as additional store warehousing and fulfillment/logistics areas to allow for service efficiencies for e-commerce fulfillment.
“Our optimized store areas are now the basis of our new generation AllHome stores. These new stores now carry a smaller footprint of 7,000 to 8,000 square meters net selling area and requires lesser CAPEX fit-out requirement,” said AllHome Vice Chairman Camille Villar.
She also noted that AllHome has further strengthened its omni-channel presence and revolutionized customer experience with an integrated customer support center which addresses customers’ concerns in a more timely and efficient manner.