AllHome, the Philippines’ pioneering one-stop full line home center, posted a core net income of P702 million as revenues amounted to P9.11 billion in the first nine months of the year.
In a disclosure to the Philippine Stock Exchange, the home retail chain also reported 36.15 percent increase in gross profit margin in 2022 from 34.2 percent for the same period in 2021, an increase of 195 basis points.
“There are still prevailing circumstances in the country that stem from the pandemic—and AllHome’s first nine months 2022 performance show signs of this,” says AllHome Chairman Manny B. Villar Jr.
He explained that “The ‘revenge spending’ phenomenon that marked the inevitable end of the pandemic has shifted to travel and leisure with the lowering of restrictions on these activities.”
“Nonetheless, we have stayed the course, sustaining our improvement over pre-pandemic performance in 2019 and even improved on our gross and net profit margins,” Villar noted.
He added that, “This, of course, is on top of our constant pursuit of improvement in our operational efficiencies. It is because of this that we are confident going into the fourth quarter of 2022, one that is historically strong for AllHome.”
AllHome maintained its nine-month EBITDA at P2.38 billion this year, 80 basis points higher than the P2.36 billion in 2021 and 28 percent over pre-pandemic 2019.
“We have seen increased construction activity throughout the country, especially as the effects of the pandemic have worn off for most part,” said AllHome Vice Chairman Camille Villar.
She added that, “We look at this with optimism for the coming year, as this will see the completion of most construction activities started or restarted during the pandemic. Those in turn will need furnishing—and that is where AllHome’s strongest categories are.”
AllHome President and CEO Benjamarie Therese Serrano regards current challenges in a positive light, pointing to AllHome’s continued improvement in operations.
“The mood of the market remains positive, especially with the pandemic drawing to a close. This is evident as we have maintained our consumer basket sizes, showing they remain comfortable in their spending on their home needs,” she said.
Serrano noted that, “Though current consumer spending has been diverted to less-essential items like travel and entertainment, AllHome has continued to hold its course in terms of delivering value to our stakeholders.”
“We have steadily increased our margins, both in gross and net terms. We have achieved this through the relentless pursuit of improvement through continuous negotiation gains, strategic inventory buys and periodic review of slow-moving and fast-moving products,” she said.
Serrano also reiterated the chain’s continued determination in implementing its operational strategies towards its 100-store milestone by 2026.
“Our capability to implement AllHome’s expansion strategy remains unchanged. We have a massive untapped resource in our synergy with the Villar Group. Of the group’s 147 cities and municipalities nationwide with a ready captive market, AllHome is present in only 35. Our pipeline for expansion, and the potential growth, only bodes well for AllHome,” she said.