ALLHOME Corp. is projecting its net income to hit the billion mark in 2019 as it targets to reach 450,000 square meters of selling space by end-2020.
In a statement Tuesday, the Villar-led home development retailer said it expects its 2019 earnings to rise on the back of robust sales during the Christmas season.
“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…” AllHome Vice-Chairman Camille A. Villar was quoted in the statement as saying.
“[O]ur 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 added.
The listed firm also said it would increase its selling space by 137,000 square meters this year as part of its nationwide expansion program.
“We are set to bring AllHome to more locations in 2020,” AllHome Chairman Manuel B. Villar, Jr. said in the statement.
“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.
The company ended 2019 with 313,000 square meters of selling space in its nationwide network. When it conducted an initial public offering (IPO) last year, it said it was planning to expand to Metro Manila and its neighboring towns for the near-term, which would help double its market share of 7.1% as early as 2020.
“When it comes to inventory sourcing for our stores, it was fortunate that we were able to get funding for our working capital in October last year through our (IPO). 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,” AllHome President Benjamarie Therese N. Serrano said in Tuesday’s statement.
With regard to the coronavirus disease 2019 (COVID-19), she said the company may feel its effect as China is a major inventory source for home development companies like AllHome. But should the epidemic last longer, the company is open to tap other countries for its sources.
“In case of a prolonged effect of the recent COVID-19 to China…, 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,” Ms. Serrano said.
Shares in AllHome at the stock exchange closed P10.78 apiece on Tuesday, up 82 centavos or 8.23% from the other day. — Denise A. Valdez