Strong sales boosted earnings of home improvement and finishing construction supply retailer Wilcon Depot Inc. by 3.5 percent to P1.2 billion in the first half.
Net sales during the period reached P18.98 billion, up by 10.9 percent year-on-year as all regions, including project sales, recorded positive comparable sales growth rates.
Depots accounted for 96.3 percent of total net sales, while Do It Wilcon (DIW) contributed 3.2 percent.
In the second quarter alone, Wilcon’s net income improved by 2.4 percent to P641 million, as net sales expanded by 12.7 percent to P9.81 billion.
‘Our second-quarter results showed solid demand, with total sales up by 12.7 percent and same-store sales rising by 8.4 percent. Every region delivered positive same-store sales growth,’ Wilcon president and CEO Lorraine Belo-Cincochan said.
According to Belo-Cincochan, the mix shifted toward lower-margin non-exclusive products, which brought down the company’s blended gross profit margin.
‘Operating expenses also increased in the quarter, driven largely by factors outside our control, though the cost measures we have in place are already helping to ease the impact,’ Belo-Cincochan said.
‘We are encouraged by the gains in customer count and sales volume. These show we are reaching more customers and give us room to improve the product mix and manage costs in the second half,’ she said.
Wilcon opened five new stores in the first half, with three more targeted to be opened for the rest of the year.
The company has so far spent P1.2 billion in capital expenditures, with the bulk spent on the construction of new stores and warehouses.