Quakes, typhoons dampen Wilcon income
The series of natural disasters that struck the Philippines tempered Wilcon Depot Inc.’s growth in the first nine months of the year.
In a disclosure on Friday, the listed firm said its net income fell by 12 percent to P1.87 billion from P2.12 billion a year ago.
Net sales, meanwhile, improved slightly by 2.6 percent to P26.34 billion from P25.68 billion, boosted by its below one-year-old stores.
Same-store sales, however, were down 1.7 percent.
Operating expenses, including lease-related interest costs, reached P7.94 billion, up 3.9 percent.
“We have already observed spurts of uptick in home improvement spending as early as May, but the momentum was intermittently disrupted by mostly natural calamities,” said Lorraine Belo-Cincochan, president and chief executive officer of Wilcon Depot.
But the official said the group was seeing signals of recovery in consumption.
In the third quarter alone, its profit climbed 15.8 percent to P703 million on higher same-store sales.
Net sales during the July to September period also increased by 8.6 percent to P9.228 billion.
“While disruptions continued in the third quarter caused by typhoons, flooding and even earthquakes, demand continued its increasing trend,” she said.
“We are optimistic that we are on our way to reversing our earnings decline for the year,” the official added.
The group opened four new stores during the first nine months, while one smaller-format Home Essentials branch was shutdown.
The company ended the period with 103 stores.
