Allhome posts profit despite drop in remodeling projects

Allhome Corp., the Villar-led home retailer, said it recorded a net income of P212 million in January to march, a reversal of last year’s net loss of P27.91 million.

Revenues for the period reached P2.92 billion, some 9 percent lower than last year’s P3.23 billion.

With the return of the Philippines to “normal circumstances,” the company said a new challenge has appeared in the form of shifting consumer spending—now primarily focused on revenge retail.

With the slowing down of renovation and home improvement spending in favor of travel and re-enjoying the outside world, the company said it is “cognizant of the new tasks at hand.”

“Our first quarter performance still reflects that challenges from 2022: weakened sales attributable to a clear shift in consumer spending. Travel, leisure and entertainment continue to take precedence as they were suppressed during the heavy quarantine periods and long periods of pandemic circumstances,” Allhome President and CEO Benjamin Therese Serrano.

“However, our first quarter shows signs hallmarks of the key strengths of Allhome. Our soft categories—where we have a clear advantage—continue to generate the lion’s share of our revenue.”

Serrano said the company will continue to pursue efficiencies in operations through the optimization of each store’s revenue potential, energy and manpower rationalization, optimization of in-store warehouses to save on rented warehouses, among others.

Last year, the company said it saw a resurgence in its hard categories, such as construction materials, hardware, tiles and sanitary wares, during the nine months of 2021, when the Philippines was under a series of strict lockdowns.

Allhome said it wants to bring its hard category performance to a 50-50 split with its soft categories in the coming years, as the company continues to improve on its initiatives to grow its share in the builders’ market.