AllHome, the country’s pioneering one-stop full-line home center, reported a net profit of P525 million in the first half of 2022, 21 percent better than its pre-pandemic performance during the same period of 2019.
In a disclosure to the Philippine Stock Exchange, the firm said revenues reached P6.27 billion in the first half of 2022.
The chain also noted improvements in its gross profit margins, with first half 2022 performance indicating 35.9 percent of revenue versus 33.1 percent in 2021, and 29.5 percent in 2019.
“The country at large has successfully demonstrated and sustained its optimism in the post-pandemic scenario,” said AllHome Chairman Manny B. Villar Jr.
He noted that, “The return to normalcy—as can be seen in the consistent pandemic alert levels and the brisk increases in footfall to malls and centers of commerce.”
“While AllHome still continues to feel the effects of prevailing circumstances in the country, our current performance still shows marked improvement over pre-pandemic levels of 2019, and is an increasingly tangible and welcome sign that things are only going to improve for AllHome,” Vilar said.
He added that, “People are returning to stores and spending more, and we fully intend to capitalize on this sustained optimism.” The first half of 2022 also saw AllHome posting an 8.8 percent increase in EBITDA to P1.66 billion from P1.53 billion in the same period of 2021.
A notable trend observed by regional thinktank Euromonitor during the pandemic was the migration from urban city centers to the countryside, with consumers—including the upper class—seeking space further from identified centers of activity, shifting their sights on rest houses and holiday homes away from the city.
“The shift of home building and making away from the city, a trend identified by Euromonitor International in its February 2022 report on consumer trends—especially in the home improvement and home and garden industries—is something we have paid close attention to in our expansion strategy,” said AllHome Vice Chairman Camille Villar.
She added that, “Part of the AllHome experience of elevated customer journeys is making it accessible where our customers are—or want to be. This trend has informed our strategy of locating not only in the country’s historically urbanized centers, but in the emerging ones as well that still give the flavor of the more relaxed Philippine countryside.”
Villar said “This can be seen in our latest location in Davao, and soon, in Cebu. We believe this is a great opportunity for AllHome, and definitely a better home-shopping experience for our future customers in these areas.”
AllHome President and CEO Benjamin Therese Serrano, meanwhile, stressed the chain’s continued determination in implementing its operational strategies toward its 100-store milestone by 2026.
“Despite prevailing circumstances, our confidence in our capability to implement AllHome’s expansion strategy remains undeterred. To date, AllHome has already added five new locations in the first half of 2022 alone, with the highlight being our newest large format store in Davao,” she said.
Serrano added that, “We believe that the current optimism of consumers with regards to the pandemic scenario is well-founded and has reflected in our operating performance.” “Basket sizes in AllHome stores are up 5 percent versus the same period last year—an indicator that our customers continue to be confident in their spending,” she noted.
Serrano also pointed out that, “In addition to a general mood shift that can only bode well for AllHome, this puts us in a position where we can best use our synergies with the Villar Group’s retail and real estate affiliates to continue to provide our trademark comprehensive and elevated experiences to even more customers.”