EARNINGS of Wilcon Depot, Inc. jumped 18.2% in the first three months of the year, boosted by a double-digit increase in sales alongside steady margin expansion.

In a regulatory filing, the listed home improvement and construction supplies retailer said net income reached P484 million following a 21.9% uptick in net sales to P5.73 billion in the first quarter.

“The increase is attributed mainly to a strong net sales growth and healthy gross profit margin expansion,” the company said in a statement.

Depot format stores, which accounted for 96.1% of total net sales, saw revenues grow 22.5%, driven by same-store sales growth of 8%. New stores also contributed to topline growth as the company opened its second depot in Davao City during the quarter.

Wilcon’s smaller format, Home Essentials, contributed 2.8% of net sales which stood at P161 million. Home Essentials recorded a same-store sales growth of 4.5%.

The balance of net sales came from project sales, or those made to large property developers, which firmed up 4.9% to P65 million.

The company also noted that gross profit margin improved to 32%, against the 31.3% it booked in the same period a year ago.

“The improvement was brought about mainly by the rising contribution of higher margin in-house and exclusive products to total net sales, which accounted for 48.8% this period,” the company said.

Wilcon closed the quarter with 53 stores, bringing it closer to its target of 59 outlets by the end of the year. — Arra B. Francia