VILLAR-LED AllHome Corp. logged a 21% decline in its net profit for the third quarter on the back of lower sales.
In a regulatory filing on Wednesday, AllHome said its net profit from July to September dropped to P139.55 million from P176.48 million last year.
The company’s third-quarter sales fell 3.5% to P2.74 billion versus the P2.84 billion posted in 2022.
In contrast, AllHome said its net income for January to September rose 46% to P582 million from P399 million a year ago.
The higher net income comes despite the company’s nine-month sales falling 3.6% to P8.78 billion from P9.11 billion last year due to lower demand.
“This was brought about by the weakened demand in the hard categories as customers deferred their purchases for home construction and finishing owing to rising inflation, while soft categories remained steady,” AllHome said.
AllHome Chairman Manuel B. Villar, Jr. said the company is expecting a strong performance in the fourth quarter and a positive outlook for next year.
“We are heading into [the] last quarter of 2023 — historically strong for AllHome — and beyond that, a positive 2024 outlook,” Mr. Villar said. “We are confident in the performance of our soft categories, as this shows that new homeowners are now entering into the furnishing stage, and we see this further picking up to close out 2023.”
“This uptick in AllHome’s soft categories also coincides with a holiday season where travel and movement restrictions from the pandemic are gone, and overseas Filipino workers will be coming home to their families, which only bodes well for AllHome,” he added.
Meanwhile, AllHome President and Chief Executive Officer Benjamarie Therese N. Serrano said the company is pleased with its business results as of September.
“We set out to implement initiatives towards optimization of our operations across the board: store revenue potential, energy and manpower initiatives — even warehousing. We are glad to see all of these bear fruit,” Ms. Serrano said.
“While we saw some slowing in our hard category performance, we also see a unique opportunity to wrestle market share from our competitors. In addition to our hard categories, the AllHome value proposition of one-stop full-line home center allows us to present to an attractive alternative to in terms of unique offerings and convenience to our customers,” she added.
On Wednesday, shares of AllHome at the local bourse fell eight centavos or 5.71% to P1.32 apiece. — Revin Mikhael D. Ochave