Wilcon Depot Inc. on Monday reported a 22 percent decline in net income in the first nine months this year, dropping to ₱2.11 billion from ₱2.72 billion last year, driven by sluggish demand for home improvement products.
Company president and CEO Lorraine Belo-Cincochan said the decline persisted throughout the third quarter, exacerbated by inclement weather that effectively delays construction projects.
But despite the challenges, Wilcon is close to achieving its goal of putting up 100 more stores, with 98 currently in operation and the milestone branch expected to open by year-end. “While expansion-related expenses have impacted our net income, we believe it’s crucial to position ourselves for greater market share, especially as customer preference shifts towards convenience and accessibility post-pandemic,” Cincochan said.
Net sales over nine months this year fell 1 percent to ₱25.68 billion, down from ₱26.34 billion. In the third quarter alone, income plummeted 33 percent to ₱607.65 million from ₱907.97 million last year, with revenue falling three percent to ₱8.57 billion.
During the period, Wilcon opened three new stores—one in the Visayas and two in Luzon—bringing the total to 98. Sales from depot-format stores comprised 96 percent of total net sales at ₱24.65 billion, also down one percent year-on-year. New depot openings contributed four percent to total sales but same-store sales fell by 5.8 percent.
Conversely, the smaller Do-It-Wilcon format saw net sales increase by 34 percent to ₱738 million, largely due to new store openings, although same-store sales dipped by four percent. Project sales to major institutional accounts accounted for the remaining one percent of total sales, amounting to ₱294 million—a 20 percent decline from the previous year.
