Better sales, margin boost Wilcon’s Jan-Sept earnings

LISTED Wilcon Depot reported on Thursday that its ninemonth net income grew by double digits on the back of improved sales and margin.

In a disclosure, the home and construction supplies retailer said its net profit rose by 11.1 percent to P1.54 billion in the January- to- September period from P1.39 billion a year ago.

Net sales in the period climbed by 17.4 percent to P18.04 billion from year- earlier P15.36 billion.

Gross profit margin improved to 32.8 percent in the first nine months from 31.3 percent last year. This translated to a gross profit of P5.91 billion, up 23 percent from the previous year’s P4.81 billion.

The depot format stores — which make up 95.8 percent of the revenue pie — saw its nets sales increase by 17.7 percent to P17.28 billion in the first three quarters from P14.68 billion a year ago.

As of end- September, Wilcon has 48 depots and 55 stores across the country.

The firm’s Home Essentials segment’s nine- month profit jumped by 6.4 percent to P492 million, which accounted for 2.7 percent of total earnings.

As of end- September, operating expenses — which covered depreciation, amortization, utilities, trucking and taxes, among others — surged by 24.3 percent to P3.91 billion from P3.15 billion the previous year.

“Operating expenses, meanwhile, continued to rise as new stores continue to be opened and the adoption of the new accounting standard for leases starting this year,” Wilcon said.

The company has spent P2.03 billion in capital expenditures in the first three quarters to construct new stores and warehouses, and to expand or renovate some existing stores.

Wilcon shares slid by 10 centavos or 0.58 percent to end at P17.10 apiece on Thursday.