Wilcon Jan-Mar bottom line rose 4.9% to P563M

Wilcon Depot Inc. posted modest earnings growth in the first quarter as stronger sales and store expansion helped offset margin pressures and rising operating costs.

The home improvement retailer on Tuesday reported a net income of P563 million, up 4.9 percent, on the back of higher revenues.

Net sales climbed 9.1 percent to P9.17 billion, driven by comparable sales growth of 4.7 percent and contributions from new stores.

Three new depots were opened during the quarter, all in Luzon, supporting expansion while lifting overall sales performance.

Depot-format stores remained the main revenue driver, contributing 96.3 percent of total sales. Growth was anchored on same store sales gains and new branches.

Do It Wilcon (DIW) stores accounted for 3.1 percent of sales, posting a 10.4 percent increase. Project sales surged 62.9 percent year-on-year.

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Gross profit rose 4 percent to P3.39 billion, although blended gross profit margin narrowed to 37 percent due to a higher share of lower-margin products.

The contribution of exclusive and in-house brands declined to 51.7 percent, weighing on overall margins during the period.

Operating expenses, including lease-related interest, increased 4.1 percent to P2.77 billion. This reflected higher depreciation, utilities, logistics and outsourced services costs.