AllHome Corp., a leading one-stop shop home store chain, said over the weekend first-half net income jumped 133 percent to P641 million from a year ago, on the back of a double-digit growth in sales.
AllHome said six-month net sales climbed 39 percent to P6.72 billion from P4.854 billion in the same period last year as the company continued with expansion despite the pandemic.
AllHome chairman Manuel Villar Jr. attributed the positive first-half performance to the company’s ability to adapt to the challenges of the pandemic and address the shopping behavior of clients.
“This pandemic gave us the opportunity to look at our strategies and implement innovations and initiatives to increase operational efficiency. Those innovations lead to the improvement in our margins as we recalibrate our merchandise mix and implement strategic pricing to enhance returns,” Villar said.
“In addition to our intensive digital expansion program, we are adjusting to optimize our stores in view of changes in the shopping behavior of our customers during this pandemic. We will be introducing the new generation of AllHome stores soon,” he said.
The company said net income after tax grew 54 times in the second quarter to P297 million from P5 million a year ago when the strictest quarantine regulations were implemented to curb the spread of COVID-19.
Second-quarter net sales also grew by 110 percent to P3.13 billion from P1.48 billion a year earlier.
Aside from the increased sales, AllHome also improved its gross profit margin to 34.6 percent from 31.7 percent a year ago through a combination of strategic pricing and rising sales contribution of in-house brands.
AllHome opened five new stores in the first six months, bringing its store network to 55, including 39 large store formats, as of end-June.
The large stores generated the lion’s share of the company’s sales, contributing 97 percent in the six-month period.
“As the situation improves, our store network expansion strategy will remain focused on free-standing large format stores,” said AllHome president Benjamarie Therese Serrano.