AllHome Corp., the construction supply retailing company of billionaire Manuel Villar, said its 2019 net income is on track to hit at least P1 billion on aggressive store expansion and higher sales.
AllHome vice chairman Camille Villar said in a statement strong fourth-quarter sales due to holiday spending would boost the company’s net income to at least P1 billion.
“We are confident of ending 2019 with at least P1 billion in net income given that historically our fourth-quarter performance is typically our strongest when it comes to sales as our stores would benefit from the holiday season as they are strategically located and are part of our innovative ecosystem of world-class retail concepts surrounding it,” she said.
AllHome registered a 225-percent jump in net income to P746.2 million in the first nine months of 2019 from P229.7 million in the same period last year. Total revenues increased 72 percent to P8.2 billion from P4.8 billion in the comparable period a year ago.
AllHome plans to roll out more stores in 2020 to end the year with 450,000 square meters of selling space from 313,000 sq. m. at the of end 2019.
“We are set to bring AllHome to more locations in 2020,” said AllHome chairman Manuel Villar Jr. “Our expansion program is both sustainable and strategic by taking advantage of the synergies between our real estate companies such as Vista Land as well as the opportunities in the home improvement industry in the Philippines,” he added.
Meanwhile, the company said it has secured enough inventory needed for the planned store expansion.
“It was fortunate that we were able to get funding for our working capital in October last year through our initial public offering which contributed to our increased inventory cover. We already secured the needed inventories for our planned store expansions as well as for our existing stores which can last between 6 to 8 months,” said Allhome president Benjamarie Therese Serrano.
“In case of a prolonged effect of the recent corona virus disease (COVID-19) to China which serves as one of the major inventory sources of the home improvement players in the country, we can easily shift to our other existing sources like Vietnam, Indonesia, Malaysia, Thailand, India and even the United States. Our fresh funds indeed came in at the right time when it comes to our inventory management,” she said.