AllHome sales recover in Q2

Philippine home improvement retailer AllHome Corp. posted a turnaround in the second quarter of the year, reporting a three per cent rise in sales -- but the performance was not enough to offset its dismal showing in the first quarter.

AllHome, which is owned by the Philippines’ top billionaire Manuel B. Villar, Jr., disclosed sales of 3.117 bn Philippine pesos (PHP, 50.635 mio euros) during the April to June 2023 period, slightly better than the PHP 3.026 bn it made in the same period last year.

The retailer attributed this to its “capability to quickly adapt to shifting consumer spending”.

“We are at looking at every angle to maximize revenue potential for the chain, and I  am pleased that our initiatives to strengthen AllHome’s leadership, operations and efficiencies are bearing fruit,” Villar, who is chairman of the company, was quoted in a statement as saying.

The minimal sales rise was not enough to pull the retailer out of the 11 per cent sales drop it saw in the first quarter, which stemmed from a slowdown in construction and a shift in spending towards travel and leisure. AllHome’s overall sales for the first semester slipped 3.61 per cent to PHP 6.038 bn.

Villar, however, expects the momentum of the second quarter to be sustained for the rest of 2023, on expectations of a rise in the handover of condominium units to buyers next year.

“As we head into the historically strong quarters of AllHome and a positive 2024 outlook that sees a rise in condominium turnovers—which means  entry into the furnishing stage — we view the balance year of 2023 with much confidence and optimism,” he said.