Despite the lockdowns last year, pioneering one-stop shop home store owner AllHome Corporation managed to maintain its profitability with double digit sequential growth in the fourth quarter.

In a disclosure to the Philippine Stock Exchange, the firm said net income was relatively flat at P1 billion last year from P1.05 billion in 2019 while revenues improved 3 percent to P12.4 billion in 2020.

Net income for the fourth quarter of 2020 jumped 28 percent to P399.6 million from the third quarter’s P312.5 millionas revenues also posted double digit growth of 18 percent to P4.1 billion from P3.5 billion in the third quarter.

AllHome said the improvement in sales and net income was brought about by the opening up of the Philippine economy and easing of quarantine restrictions in the third and fourth quarters that compensated for the loss of revenues in the second quarter.

The company maximized its 7 categories to generate sales with the soft categories compensating for the reduced sales from hard categories.  Gross margin improved to 31.2 percent in 2020 from 29.9 percent in 2019.  

“We are cautiously optimistic with the home improvement industry for 2021.  Bolstered by the reopening of the economy and the sustained improvement of our sales since the third quarter of 2020, we resumed with our expansion program,” said AllHome Chairman Manuel B, Villar, Jr. 

He added that, “We also continued with our innovations to take advantage of the recent trends and introduced a new concept for our Appliances category, the AllDigital.”

AllDigital is a small specialty store that sells digital products essential in navigating the new normal of work-from-home, distance learning, and increased online gaming.

AllHome Vice Chairman of Camille A. Villar said “The year 2020 has proven AllHome’s strength and capability to quickly respond to the health and shopping challenges of the pandemic and to capitalize on the AllValue retail ecosystem by putting pop-up stores for essential products beside its affiliate company AllDay supermarket during the early days of ECQ.” 

AllHome also quickly launched its ecommerce platform allhome.com.ph, Viber communities, and a personal shopper service, as well as establish various cashless payment options with the health and safety of its employees and customers as primary consideration.

“Our digital presence complements our brick and mortar stores as we use them for our fulfillment,” she added.  

AllHome ended 2020 with 50 stores, opening 5 new stores one after another from September to December. Immediately after, the Company has opened its 51st and 52nd stores in January and February 2021, respectively. 

“We have changed our conservative stance in terms of our store expansion program last year after we have seen a much improved sales numbers in the 3rdquarter which was sustained for the rest of 2020 thus opening a number of stores in the 4thquarter of 2020 which spilled over to the 1stquarter of 2021,” said Benjamarie Therese Serrano, President of AllHome. 

She added that, “Our collaboration with the Villar Group is the reason why we can open a number of stores in a short span of time.  Those synergies with the Group includes more importantly the store location and fast-track construction capability in addition to the captive customer base.”


Source: Manila Bulletin (https://mb.com.ph/2021/03/28/allhome-maintains-profitability-making-p1-b-in-2020-on-strong-q4/?utm_source=rss&utm_medium=rss&utm_campaign=allhome-maintains-profitability-making-p1-b-in-2020-on-strong-q4)