AllHome Corp., the Villar Group’s pioneering one-stop full-line home center, saw net profit last year drop 15 percent to P707.3 million as consumers reduced spending on non-essential products depressed sales while gross expenses rose.
Net revenue declined 4 percent to P12.06 billion while gross expenses rose 7.2 percent to P3.28 billion. Gross profit margin still rose to 38 percent from 36.8 percent in 2022.
AllHome president and chief executive officer Benjamarie Therese Serrano said the company will continue to focus on improving operational efficiencies to push earnings growth.
“Though current consumer spending has been diverted from home retail to less essential expenses like fashion, health and beauty, entertainment, and travel, AllHome remains committed in delivering value to our stakeholders. We have steadily increased our margins, both in gross and net terms, ending 2023 with a gross margin of 38 percent,” said Serrano.
“We also continue to seek out operational efficiencies, especially as we face unusually high inflation and increased utilities costs,” she added.
Serrano said the long-term fundamentals of the home retail sector remain sound.
“And we look to take advantage of this with AllHome reclaiming its position as a premium home retailer that enjoys the unique synergy of self-sustaining retail ecosystems, buoyed by synergies with Vista Land, the country’s largest home builder, as well as with its sister companies under the AllValue umbrella,” she added.
