AllHome 2022 profit down

MANILA  -Billionaire Manuel Villar Jr.’s retailer AllHome Corp. struggled with sales and lower foot traffic last year as the postpandemic revenge spending trend prioritized entertainment and travel over home improvement.

In 2022, AllHome said net income fell 35 percent to P934 million. The company also recognized losses caused by a fire at its store in Alabang on Jan. 8, 2022, its annual report showed.

“The ‘revenge spending’ phenomenon that marked the inevitable end of the pandemic has shifted to travel and leisure with the lowering of restrictions on these activities,” Villar, who is chair of AllHome, said in a statement.

“Despite the business challenges, AllHome will continue to push efficiencies where we can, such as our recorded improvements on our gross and net profit margins,” he added.

Net sales last year fell 12.3 percent to P12.6 billion while same store sales growth, which excludes the Alabang stores, was down 13 percent.

It ended the year with 60 stores from 57 in 2021, the filing showed. Net selling area was relatively flat at 295,303 square meters since the figure excludes the Alabang stores.

AllHome noted that gross profit margins rose to 36.8 percent in 2022 from 35 percent the previous year.

“The mood of the market is positive, one driven by the country’s return to normalcy,” AllHome president and CEO Benjamin Therese Serrano said in a statement.

“Though current consumer spending has been diverted to less-essential items like travel and entertainment, AllHome remains committed in delivering value to our stakeholders. We have steadily increased our margins, both in gross and net terms,” she added.