Wilcon Depot income up 11% to ₱1.54 billion

Home improvement and finishing construction supplies retailer Wilcon Depot, Inc. reported a 11.1 percent improvement in net income to ₱1.54 billion in the first nine months of the year.

In a disclosure to the Philippine Stock Exchange, the firm said “the increase was driven mainly by the sustained margin expansion due to the improving sales mix in favor of higher margin products and the growth in net sales.”

Net sales grew 17.4 percent to ₱18.04 billion from the prior year’s nine months total of ₱15.36 billion.

Comparable sales growth improved to 5.4 percent from the first half 2019 growth of 4.7 percent while new stores’ sales of ₱1.85 billion contributed the balance of the total growth. Comparable sales growth improved to 6.6 percent quarter-on-quarter.

The depot format stores accounted for 95.8 percent of total net sales reaching ₱17.28 billion for the nine-month period, up 17.7 percent, with a same store sales growth of 5.2 percent.

The smaller format Home Essentials contributed 2.7 percent or ₱492 million for the period, up 6.4 percent from the same period in 2018 with a same store sales growth of 3.4 percent.

Project sales or sales to large property developers and to the hospitality industry grew 20.6 percent to total ₱260 million for the year. Project sales accounted for 1.4 percent of the Company’s net sales.

“We are pleased with our performance in the third quarter. Our gross profit margin continued to improve and comparable sales growth rate increased from 1.9 percent to 6.6 percent quarteron-quarter, which partly offset the impact of our increasing operating expenses attendant to our store network expansion,” Wilcon President and CEO, Lorraine BeloCincochan said.