EARNINGS of Wilcon Depot, Inc. went up by a fifth in the first six months of 2018, fueled by higher sales from existing stores alongside its expansion to new markets.
The listed firm said in a statement on Friday that net income jumped to P914 million in the first half, versus P763 million in the same period a year ago. Net sales logged an 18% increase to P10 billion.
The company attributed the increase to strong comparable sales, the development of new stores, and improving margins following its product mix strategy.
“Wilcon is looking at maintaining its 2018 net sales target growth rate of mid to high teens. While we have achieved our target for the first half, we have to continue to work hard in the second half to sustain our momentum,” Wilcon Chief Financial Officer Mark Andrew Belo was quoted as saying in a statement.
The performance of its depot-format stores accounted for 97% of Wilcon’s total sales at P9.7 billion, 18% higher year-on-year. The company opened three new depots in the second quarter alone, and saw better than expected growth from old depots.
The 3% balance of net sales came from Wilcon’s smaller format stores — called Home Essentials — provided P304 million from the period from January to June. While two new Home Essentials stores were put up in the first half, the segment’s 12% uptick can be attributed to old stores, which recorded same stores sales growth of 11.4%.
Wilcon is scheduled to open five more depots by the end of the year, in order to reach its 2018 target of 51 stores.
“As we are on track to achieve our sales growth target, we are likewise optimistic that we will achieve our mid-teens net income growth target,” Mr. Belo said.
Shares in Wilcon dropped two centavos or 0.17% to close at P11.54 each at the stock exchange on Friday. — Arra B. Francia