Wilcon income up 17% despite lower sales


WILCON Depot, Inc.’s net income for the third quarter rose by 16.7% to P622.14 million, higher than the P533.21 million logged in the same period last year despite net sales inching down because of mobility restrictions imposed during the quarter.

In a disclosure to the exchange on Wednesday, the listed home retailer reported a 1.9% dip in net sales to close the quarter with P6.62 billion from P6.75 billion year on year “in view of the almost two months of mobility restrictions as the Philippines recorded the highest number of daily cases, so far since the pandemic started.”

Wilcon’s comparable sales for the quarter also declined by 9.3%.

Meanwhile, gross profit for the three-month period amounted to P2.52 billion, up by 8.8% from P2.31 billion. The company’s gross profit margin rate stood at 38%.

“Hopefully, with the easing of restrictions as COVID-19 (coronavirus disease 2019) cases decline, our customers will be able to finish or start their home improvement projects in time for the Christmas holidays,” said Lorraine Belo-Cincochan, president and chief executive officer of Wilcon.

“We’re looking forward to a better fourth quarter,” she added.

Wilcon launched two depots in the third quarter, while a total of six depots were opened in the nine-month period ending September. This led to a 10% increase in operating expenses for the third quarter to P1.78 billion, while the nine-month total was up by 16.7% to P5.17 billion.

“To date, seven depots and one Home Essentials have been opened with the last two branches, one Home Essentials and one depot, opening back to back on [Oct. 15],” the company said.

Wilcon plans to open a total of nine new depots this year and one Home Essentials branch. The company spent P1.848 billion for capital expenditure projects by the end of the third quarter.

For the nine-month period, Wilcon generated P1.87 billion in net income, surging by 111.1% from last year’s P885.57 million “driven by higher net sales and gross profit margin partly offset by increased operating expenses.”

Sales climbed 27% in the three quarters to P20.05 billion compared with last year’s P15.79 billion, owing to the “generally uninterrupted operations” in Luzon stores. Comparable sales also went up by 16.9%.

The company’s gross profit for the nine-month period totaled P7.43 billion, improving by 36.7% from P5.44 billion year on year, which resulted in a gross profit margin rate of 37.1%.

On Wednesday, Wilcon shares at the stock market rose 6.21% or P1.85 to close at P31.65 apiece. — Keren Concepcion G. Valmonte

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