Wilcon Depot profit falls 10% in Q2
By Revin Mikhael D. Ochave, Reporter
LISTED home improvement and construction supplies retailer Wilcon Depot, Inc. saw a 10% decline in net income to P770.41 million in the second quarter (Q2) from P855.77 million a year ago due to higher operating expenses related to expansion and one-off charges.
In a statement, Wilcon President and Chief Executive Officer Lorraine Belo-Cincochan attributed the profit drop in the second quarter to the one-off charge of P98 million for inventory allowances and loss due to fire.
In April, a fire hit the Wilcon depot branch in Baliwag, Bulacan.
Wilcon Depot’s latest financial statement showed net sales increased by 2.9% to P8.88 billion in the April to June period from P8.62 billion in the same period last year.
The company opened two new Wilcon Depot branches in the second quarter.
“The improved second-quarter performance was partly due to the timing of the long holidays but we also rolled out programs focused on contractors and professionals and best deals promotions to increase turnover,” Ms. Belo-Cincochan said.
Operating expenses, including lease-related interest, rose by 10.2% to P2.61 billion due to expansion-related expenses.
For the first half, Wilcon said its net income fell by 16.9% to P1.51 billion from P1.82 billion last year.
In January to June, net sales rose by 0.2% to P17.18 billion due to the sales from five new stores. Same-store sales in the first half fell by 4.6%.
Wilcon Depot branches saw a 1% decline in net sales to P16.47 billion, while smaller Do-It-Wilcon format stores recorded a 39.1% rise in sales to P488 million. Project sales to institutional accounts increased by 41.5% to P227 million.
Including lease-related interest, operating expenses rose by 8.6% to P5.08 billion.
“We are looking forward to a better second half as we continue to push for higher sales while realigning resources deployed with the current market demand,” Ms. Belo-Cincochan said.
She said the company is planning to open more stores to reach its 100-store target by end-2024.
As of end-June, Wilcon had 95 branches.
Wilcon shares fell by 2.23% or 40 centavos to P17.50 each on Wednesday.