EARNINGS of Wilcon Depot, Inc. showed flat growth in the second quarter of 2019 due to the long holidays which affected the company’s number of operating days.
In a regulatory filing, the listed home and construction supplies retailer posted a net income of P510.92 million from April to June, 1.1% higher than the P505.22 million in the same period last year. This came amid a 14% increase in net sales to P6.04 billion.
“The flat earnings growth of 1.1% we had in the second quarter was mainly due to the base effect and the slowdown in sales because of the long holidays in April wherein we also had less number of operating days and the elections in May,” Wilcon President and Chief Executive Officer Lorraine Belo-Cincochan said in a statement.
On a six-month basis, Wilcon’s net income was up 8.8% to P994.55 million, following 17.8% growth in net sales to P11.79 billion.
Wilcon’s depot formats contributed 95.7% of total net sales at P11.28 billion, up by 18.1% year on year on the back of 4.5% growth in same-store sales. Sales from the home essentials format grew by 8% to P329 million, while sales to large property developers and the hospitality industry accounted for the remaining P173 million.
Capital expenditures for the first semester reached P1.31 billion, which went to the construction of new stores as well as furniture, equipment, computer software, and transportation equipment.
The company expects sales to improve in the second half, in a bid to hit the low teens earnings guidance it earlier provided.
“Our sales volume has been almost always higher during the second half of the year and thus we believe that we will be able to pull up our earnings growth to low teens level for the whole year as we previously guided,” Ms. Belo-Cincochan said.
Wilcon earlier said its revenues may grow in the high teens this year.
The company is targeting to have 100 stores by 2025, once it achieves its goal of having 65 branches by 2020.
Shares in Wilcon slipped 0.25% or four centavos to close at P15.68 each at the stock exchange on Thursday. — Arra B. Francia