Wilcon net profit jumps nearly 78% to P1.1 billion as sales rise

CONSTRUCTION supplies retailer Wilcon Depot, Inc. had a 77.5% jump in its third-quarter income to P1.1 billion after booking higher sales and improved gross profit margin.

“The complete turnaround of our stores from the slight slump in the third quarter of last year, propelled comparable sales growth to 23.5% year on year,” Wilcon President and Chief Executive Officer Lorraine Belo-Cincochan said in a press release on Tuesday.

According to Ms. Belo-Cincochan, Wilcon has seen in the past quarter the reopening it hoped to happen last year that was dampened by the surge of the Delta variant of the coronavirus disease.

“A lot more private construction has indeed resumed this year, particularly those that were delayed due to mobility restrictions and lack of manpower, inflation notwithstanding,” she added.

In the third quarter, the company’s net sales reached P8.78 billion, a 32.6% climb from P6.62 billion last year, which the company attributed to the recovery of its stores in Metro Manila as well as to its new stores.

During the quarter, Wilcon added four new stores, which brought its total store count to 80 by the end of September.

“We also still have one new store to be opened this fourth quarter and we expect to have opened eight stores by the end of this year,” Ms. Belo-Cincochan said.

Wilcon reported that its gross profit increased by 37.4% to P3.46 billion driven by the rise in its gross profit margin rate to 39.4% from 38% in 2021.

The company booked a higher cost of sales in the third quarter at P5.32 billion, up 29.7% versus P4.1 billion last year.

Its operating expenses also climbed by 19.3% to P1.98 billion from P1.66 billion, which the company said was a result of a higher volume of business.

The company’s other income in the three months ended September totaled P144.96 million, a 57% jump from the P92.3 million last year.

Wilcon’s other income came from supplier support and other fees, delivery fees and other customer charges, rent, interest income, and foreign exchange gain.

In the nine months to September, Wilcon’s net income amounted to P2.96 billion, 58.3% higher than the P1.87 billion in the previous year driven by a higher volume of business amid eased mobility restrictions.

Year to date, the company’s net sales climbed by 23.3% to P24.72 billion from P20.05 billion last year, while its cost of sales climbed by 19.7% to P15.11 billion from P12.62 billion a year ago.

“With the resilience shown by our mature stores, we will focus on further enhancing their performance for the rest of the year and especially for the succeeding years,” Ms. Belo-Cincochan said.

On the stock market on Tuesday, shares of Wilcon climbed by 50 centavos or 1.75% to P29 each. — Justine Irish D. Tabile