ALLHOME Corp. on Thursday reported that its net income after taxes was up 46% to P1.44 billion last year after it moved to increase profit margins while boosting sales.
“AllHome’s performance in 2021 is a full display of our core advantages as we navigated through the many challenges of the pandemic. As this global challenge draws to a close, we view 2022 with optimism. All signs point to an increased pace of economic recovery throughout the country, and this bodes well for AllHome,” AllHome Chairman Manuel B. Villar, Jr. said in a disclosure.
In 2021, the company posted 15% growth in net revenue to P14.3 billion from P12.4 billion in 2020, while gross profit improved 28% to P5.01 billion from P3.9 billion in the year before.
“2021 saw AllHome employing a number of initiatives to improve gross profit margins, which increased to 35% of revenue from only 31.6% in 2020. Strategic pricing and increasing in-house brands sales contribution all served to contribute to the marked improvement,” the company said.
AllHome’s same store sales growth (SSSG) improved to 8.1% from 3.5% while transaction count rose by 8% to 3.9 million from 3.6 million year on year.
“Despite the operational challenges that the pandemic presented, AllHome’s growth in revenue, earnings before interest, taxes, depreciation, and amortization, and net income after taxes, all point to the company’s inherent adaptability and agility to weather extraordinary circumstances,” AllHome President Benjamarie Therese N. Serrano said.
AllHome said that its shift into the digital landscape will carry a smaller carbon footprint and will require less capital expenditures.
In 2021, it deployed operational efficiency programs to optimize store formats, allowing for additional store warehousing and dedicated fulfillment and logistics areas for e-commerce.
As of December, e-commerce revenue for AllHome accounted for 11% of total revenue.
“With the increasing adoption of online shopping across all consumer channels, AllHome will continue to leverage innovative customer-facing measures and automated digital marketing campaigns to strengthen our omni-channel presence and grow our consumer base. Aside from AllHome’s strong performance in a time of pandemic, we are notably gaining ground in the e-commerce space, with 11% of our revenue now coming from online channels,” AllHome Vice-Chairman Camille A. Villar said.
“With the government’s steady pace of downgrading restrictions towards a more normal scenario, we are starting to see our operations returning to full strength. Our 2021 SSSG and increasing transaction counts for the same period are reflective of customers returning to stores, and we are confident in the strategies we have in place to push towards our 100-store milestone in 2026,” AllHome added.
The home improvement and construction company offers a line of products for maintenance, repairs and renovations, and decorating. Product categories include furniture, hardware, appliances, tiles and sanitary wares, homewares, linens and construction materials.
The company also offers services such as interior design consultations, door-to-door delivery and installation, customizable furniture, free furniture assembly, and gift registry.
At the stock exchange on Thursday, AllHome shares dropped by 0.52% or P0.04 to close at P7.60 per share. — Luisa Maria Jacinta C. Jocson
