Wilcon grows Q1 profit to P484M
Leading home improvement and construction supply retailer Wilcon Depot grew its first quarter net profit by 18.2 percent year-on-year to P484 million as sales volume and margins expanded despite the softer domestic economic growth for the period.
Total net sales grew by 21.9 percent year-on-year to P5.73 billion for the first quarter.
Sales from depot format stores accounted for 96.1 percent of total net sales. This segment grew by 22.5 percent. Wilcon opened one new depot in Davao, its second branch in the city.
Sales from the smaller format Home Essentials likewise grew by 9.7 percent to P161 million, accounting for 2.8 percent of total net sales.
The remaining 1.1 percent of Wilcon’s total net sales was accounted for by project sales to large property developers totaling P65 million for the period. This marked a 4.9-percent increase year-on-year.
Gross profit rose by 24.6 percent year-on-year to P1.834 billion, up 24.6 percent for a gross profit margin of 32 percent. This was in view of higher sales particularly of the higher-margin exclusive and in-house brands.
The contribution of these higher-margin brands to total sales improved to 48.8 percent of total net sales, exceeding the target contribution for the year of 48 percent.
Meanwhile, Wilcon’s operating expenses rose by 20.8 percent year-on-year to P1.2 billion, largely due to increases in depreciation and amortization, manpower costs and utilities.
Wilcon spent P750 million for capital outlays in the first quarter, mostly for its continued expansion. —DORIS DUMLAO-ABADILLA
