Wilcon Depot Inc., a leading home improvement and finishing construction supplies retailer, said Wednesday its second-quarter net income declined by 10 percent to P770 million after it booked a P98-million loss.
Wilcon Depot’s store in Baliuag, Bulacan caught fire in April this year.
Wilcon said in a stock exchange filing second-quarter sales grew 2.9 percent to P8.87 billion.
“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,” said Wilcon president and chief executive Lorraine Belo-Cincochan.
Belo-Cincochan said the company was expecting better performance in the second half of 2024 at it would continue to push for higher sales while re-aligning resources deployed with the current market demand.
“We are continuing with our store network expansion program, opening five new stores for the first half and on track to reach our 100-store target by the end of the year,” she said.
The company’s second-quarter performance pushed the first-half net income to P1.51 billion, down 16.9 percent from a year ago as operating expenses grew faster than net sales growth. Six-month sales were nearly flat at P17.18 billion.
Gross profit margin rate expanded to 39.8 percent in the first half from 39.5 percent in the same period in 2023 to bring the gross profit level to P6.839 billion by the end of the period.
Net sales from the depot-format stores, which comprised 95.8 percent of total net sales, were lower by 1 percent year-on-year to P16.469 billion.
Sales from smaller Do-It-Wilcon (DIW) format rose 39.1 percent to P488 million due to new store openings. Same-store sales in the smaller store format declined by 3.1 percent.
Jenniffer B. Austria
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