Listed home improvement and construction supply retailer Wilcon Depot Inc. on Tuesday reported a 23 percent drop in net income for the first half this year to ₱1.16 billion from ₱1.51 billion last year.
The earnings decline was attributed to weaker same-store sales performance and a rise in operating expenses linked to the company’s ongoing expansion. Despite these headwinds, Wilcon remains committed to its growth and efficiency initiatives aimed at stabilizing and improving profitability in the medium term.
“We are already seeing an upward trend in our sales, and our same store sales growth turned positive in June,” said Wilcon president and CEO Lorraine Belo-Cincochan, citing the temporary dip in foot traffic during the extended holidays in April and May, as well as the national elections in May.
To address rising costs, the company implemented a series of cost management measures including process reconfigurations and adjustments in manpower and equipment deployment. According to Cincochan, improvements are already visible, particularly in logistics, with further positive impact expected into next year.
For the January to June period, net sales edged down 0.4 percent to ₱17.11 billion, a ₱75 million decrease year-on-year. Comparable store sales declined 4.9 percent, driven by lower average transaction values, which Wilcon attributed to a shift in product mix and pricing trends.
Despite the softer financial performance, Wilcon continued to invest in its store network expansion, opening three new branches and reopening its Baliwag, Bulacan store, which had previously suffered fire damage. This brings the company’s total operating stores to 103 nationwide.
Beyond expansion, the retailer is also taking steps to improve profitability across its existing store base, including revisiting store layouts, optimizing floor space, and trimming operating areas to manage costs more effectively.
“If sales growth rates continue to trend upward and we are able to control increases in some expense items, we are expecting to reverse the net income decline in the first half,” Cincochan said.
Wilcon’s strategic actions reflect its focus on long-term growth and operational efficiency, as it navigates evolving consumer behaviors and market conditions.
