Wilcon income dips on cost pressures
Wilcon Depot Inc. saw its 2025 net income slip to P2.45 billion, down 3.3 percent, as higher costs and weaker margins offset gains from expanding sales.
The home improvement retailer led by the Belo family said Monday it had posted net sales of P35.44 billion, up 3.7 percent, largely driven by contributions from new stores.
However, comparable sales growth for the year was flattish at 0.3 percent, indicating that existing stores failed to generate meaningful gains and that growth leaned on store expansion.
Wilcon said gross profit rose 2.5 percent to P13.68 billion, supported by a higher share of in-house and exclusive brands. This was partly offset by lower gross profit margin rates from both in-house and nonexclusive products.
Operating expenses climbed 3.7 percent to P10.85 billion, driven mainly by higher depreciation and amortization, manpower expenses and repairs and maintenance.
Q4 profit up 41.3%
Meanwhile, other income fell 12.3 percent to P424 million, due largely to lower collections of supplier support and fees.
These factors pulled down earnings, even as the company expanded its footprint and improved sales contributions from new branches.
In the fourth quarter alone, Wilcon reported a 41.3-percent jump in net income to P580 million, as sales grew 7.3 percent to P9.11 billion.
The growth was supported by comparable sales expansion of 3.8 percent, driven mainly by higher ticket size, while transaction count remained largely flat.
“We recalibrated some functional strategies, such as in-store organizational structure and processes, product marketing plans, store layouts, among others, which were aimed at reversing performance downturns,” said Lorraine Belo-Cincochan, president and CEO of Wilcon.
Wilcon ended 2025 with 104 operating stores after opening six new depots, while closing two underperforming Do-It-Wilcon branches and reopening one depot.
Looking ahead, the company plans to open eight more stores in 2026, three of which have already been launched as it continues its nationwide expansion.
The board also approved cash dividends of P0.40 per share, an 11.1-percent increase from the previous year.
