WILCON DEPOT, Inc. targets to have 100 stores in its network by 2025 in a bid to expand to unserved markets in the country.
In a statement issued Monday, the listed home improvement and construction materials retailer said this will be the next phase of its expansion once it reaches its target of 65 branches by the end of 2020.
“Considering the pace of our new store openings since 2017, by 2025 we may already reach this target barring any major hurdles beyond our control. We are still in the process of completing our scoping for possible sites,” Wilcon Chairman Emeritus William T. Belo said in a statement.
The company has eight new depots in the pipeline this year, two of which have already been opened. This is in addition to the eight stores it opened in 2018 located in Naga, Tacloban, Puerto Princesa, and in the Calabarzon Region, for a total of 51 stores by end-2018.
All new stores to be opened this year are located outside Metro Manila.
Meanwhile, the company expects its net income to grow in the low “teens” this year on the back of a projected increase in the high “teens” for revenues. Its financial results will be affected by the high base recorded in 2018, as well as changes in accounting standards implemented this year.
Wilcon Chief Operating Officer Rosemarie B. Ong also added that the company’s second-quarter performance will be pulled down by the lower number of operating days this year.
“This year, the long Easter break fell in April while last year it was in March so a slowdown in our growth trajectory is to be expected this second quarter because of the combined effects of a high base and lesser number of operating days,” Ms. Ong said in a statement.
Wilcon realized a net income of P483.63 million in the first quarter of 2019, 18% higher year on year on the back of a 22% increase in gross revenues to P5.79 billion.
Shares in Wilcon rose by 0.12% or two centavos to close at P16.60 each at the stock exchange on Monday. — Arra B. Francia