AllHome Corp., the retail and wholesale arm of the Villar Group, reported a steep decline in profit for the first half of the year, citing soft demand for construction and furnishing products amid a sluggish real estate market.
The company said net income dropped 60 percent to P113.8 million from P282.4 million in the same period last year. Sales fell 29 percent to P3.99 billion, reflecting reduced consumer spending linked to the ongoing downturn in property development.
“A strong real estate market has historically been a significant driver of construction and furnishing-related expenditure,” the company noted.
Support, fees, rentals, and other revenues also declined by 21 percent to P72 million, as vendor support fell in line with weaker sales.
AllHome cited various cost-side movements. Depreciation and amortization increased due to capitalized refurbishment expenses, while salaries and benefits declined after the company implemented a strategic workforce rationalization across stores.
Rentals dropped due to lower sales—used as the basis for computing variable lease payments—while communication and utility costs fell as part of cost-saving measures. Merchant fees also decreased, in line with a reduction in credit, debit, and installment transactions.
Despite the current challenges, AllHome said it continues to optimize operations and align its business strategy with prevailing market conditions. The company did not provide guidance for the remainder of the year.
AllHome operates as a one-stop shop for construction and home improvement needs, with locations primarily in areas served by Villar-led real estate developments.
-0-
