VILLAR-led AllHome Corp. generated a net income of P399.6 million for the fourth quarter of 2020, growing by 28% from its third-quarter income of P312.5 million.
“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 quarter and fourth quarter that compensated for the loss of revenues in the second quarter,” the company said in a statement on Saturday.
Revenues increased by 18% to P4.1 billion in the last quarter of the year from P3.5 billion in the third quarter. Year-on-year comparative figures were not disclosed.
For 2020, AllHome’s net income declined by five percent to P1 billion from P1.05 billion. Net sales inched up by nearly three percent to P12.4 billion from P12.06 billion, despite the pandemic.
“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 [the enhanced community quarantine],” Camille A. Villar, vice-chairman of AllHome, said.
AllHome began offering cashless payment options in its physical stores. The company also launched e-commerce platform allhome.com.ph, introduced a Viber community, and provided a personal shopper service.
“Our digital presence complements our brick and mortar stores as we use them for our fulfilment,” Ms. Camille A. Villar added.
AllHome said it maximized its seven product categories to generate sales, while its soft categories offset the decline in sales from hard categories.
“The balanced mix of seven product categories and diversified brand portfolio enabled AllHome to mitigate the slowdown in sales related to construction. Soft categories contributed 62% of total revenues in 2020 with appliances as top contributor at 31% of total revenues,” the company said without disclosing specific figures.
The appliances category expanded through a new concept called AllDigital, which focuses on offering work-from-home products, distance learning, and online gaming.
“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,” AllHome Chairman Manuel B. Villar, Jr. said.
The company added that its strategies “have proven effective during this time,” citing a balanced category mix and putting stores closer to residential communities.
“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 third quarter which was sustained for the rest of 2020,” AllHome President Benjamarie Therese Serrano said.
AllHome closed the year with 50 stores from 45 in 2019. The five additional stores were opened from September to December 2020. Meanwhile, two more stores were launched in January and February in 2021.
“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,” Ms. Serrano added.
“We are cautiously optimistic with the home improvement industry for 2021,” Mr. Manuel B. Villar said.
AllHome shares at the stock exchange moved up by 0.25% or P0.02 on Friday to close at P7.90 apiece. — Keren Concepcion G. Valmonte