Wilcon H1 profit up 50% on strong sales

Construction materials tycoon William Belo’s Wilcon Depot Inc. saw profits expand by about 50 percent to P1.86 billion in the first semester of 2022, mirroring the resilience of the domestic property sector.

Wilcon said in a stock exchange filing on Thursday that earnings rose due to strong sales, new store openings and improving margins.

Net sales jumped 18.7 percent to P15.94 billion as same store sales gained 11.8 percent. Wilcon also opened three new depots in Luzon, ending the period with 76 branches.

“We maintained our strategic focus and remained committed to deliver the widest array of home improvement and finishing construction products and consistent excellent customer service despite the continued operating and supply chain challenges,” Lorraine Belo-Cincochan, president and CEO of Wilcon, said in a statement.

Sales from depot format stores accounted for nearly all of revenues, the company said. It also operates smaller home essentials-format stores.
“We are on track to meet our expansion target of eight new depots for the year. This July, we opened one depot in Ilocos Sur and one Home Essentials in Tagaytay,” Belo-Cincochan said.

“We will be opening four more depots this second half. With the improving performance of stores in areas that were more frequently disrupted by mobility restrictions last year, we expect our net sales to grow by at least high teens and our comparable sales by high-single digit to low teens for the full year 2022,” she added.

Wilcon said first semester gross profits increased 25.3 percent to P6.16 billion.