AllHome posts 225% jump in profit
AllHome Corp., billionaire Manuel Villar Jr.’s one-stop shop for home furnishings, appliances and construction goods , saw a jump in nine-month earnings on new store openings.
AllHome said the January to September profit hit P746.2 million, up 225 percent, while total revenue rose 72 percent to P8.2 billion. Selling expenses went up 71 percent to P5.75 billion while operating costs rose 15 percent to P1.3 billion.
AllHome attributed the profit boost to same store sales and the addition of six new locations from the previous year. It ended the September period with 27 stores, up from 21 during the same period in 2018, while its net selling area increased almost 29 percent to 221,994 square meters.
“AllHome continues to deliver solid performance, which brings us closer to our full-year target,” AllHome chair Manuel Villar Jr. said in a statement.
“As we have previously mentioned, the home improvement industry in the Philippines is still underpenetrated and we are taking advantage of such by aggressively opening AllHome to more locations across the country,” he added.
In October, AllHome raised about P14.9 billion in the country’s largest initial public offering in three years after Pilipinas Shell Petroleum Corp. raised P19.5 billion in 2016.
The company generated net proceeds of P8.2 billion from the sale of primary shares, more than half of which would be used to repay debts. It said P3.56 billion would be used to expand its store network through 2020.
“We remain confident about the company’s prospects for the rest of the year given that historically, our fourth quarter performance is better than the rest of the quarters,” Camille Villar, AllHome vice chair, said in the same statement.
AllHome president Benjamarie Therese Serrano said the company continued to launch new stores.
She said the company opened three new stores in October, bringing the current count to 30 branches. Serrano said AllHome now operated 22 mall-based stores, four large free-standing, and four specialty stores.
