Home improvement and construction finishing retailer Wilcon Depot Inc. reported first-half income falling 17 percent to P1.5 billion from last year’s P1.81 billion as sales proved static.
Net sales barely changed at P17.18 billion although it reported a 3 percent sales increase in the second quarter alone, which could mean better prospects in the succeeding months.
“Our second quarter performance improved over that of the first quarter’s to generate a net income of P770 million. While this was down 10 percent or P85 million year-on-year, there are one-off charges recognized this quarter of P98 million for inventory allowances and loss due to fire,” Wilcon president and CEO Lorraine Belo-Cincochan, said.
“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,” she said.
“We are looking forward to a better second half as we continue to push for higher sales while realigning 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,” Cincochan said.
Five new stores opened in the first-half, bringing to 95 the total number of branches by the end of the period.
On a format basis, net sales from depot-format stores, which accounted for 96 percent of total net sales, were lower by P171 million or 1 percent to total P16.46 billion. Sales from new depots increased by 4 percent although comparable sales were 5 percent lower.
Cash dividends of P1.02 billion were distributed in May, the company said.
