MANILA, Philippines — Wilcon Depot Inc. expects a better second half as earnings in the first semester fell by double digits as the increase in operating expenses outpaced net sales growth.
The home improvement and construction supplies retailer reported a net income of P1.51 billion in the first half, 16.9 percent lower year-on-year.
Net sales during the six-month period saw a slight improvement to P17.18 billion from last year’s P17.15 billion, while operating expenses including lease-related interest expense grew by 8.6 percent to P5.08 billion.
Wilcon president and CEO Lorraine Belo-Cincochan said the company’s second quarter performance improved over that of the first quarter’s to generate a net income of P770 million.
“While this was down 10 percent or P85 million year-on-year, there are one-off charges recognized this quarter of P98 million for inventory allowances and loss due to fire,” Belo-Cincochan said.
“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,” she said.
Wilcon opened five new stores in the first half, bringing to 95 its total number of branches by end-June.
With its continuing store network expansion program, Belo-Cincochan said the company is on track to reaching its 100-store target by the end of the year.
“We are looking forward to a better second half as we continue to push for higher sales while re-aligning resources deployed with the current market demand,” she said.
Belo-Cincochan earlier said expansion abroad is also something that is on the table for Wilcon.
But while such plans are being discussed, she said it is not in the immediate future.
Wilcon has allocated about P2.2 billion in capital expenditures this year to continue its expansion.
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