June 19, 2018, 4:37 pm
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Home improvement store chain nets P409M

Wilcon Depot Inc. grew profit by 4.7 percent to P409 million for the first quarter of the year, from P391 million a year earlier. 

The company said the growth was on the back of a lack of one-off item related to the tax effect of the deductible initial public offering expenses charged to equity posted in the first quarter of last year.

Net sales rose 12.5 percent to P4.705 billion, mostlygenerated by depot format stores including institutional or project sales worth P4.558 billion. 

“The smaller home essentials format contributed the remaining 3.1 percent or P147 million,” Wilcon said. It also said comparable sales grew at 5.3 percent, with net sales from old stores accounting for 93.6 percent or P4.402 billion of the total net sales, driven by both higher average ticket size and number of transactions. 

Sales from new stores aged one year and below accounted for 58 percent or P303 million of the total increase, the company added.

“Growth from new stores is expected to continue as the company rolls out more stores during the year,” Wilcon said.

Its gross profit margin stood at 31.3 percent as higher margin products posted 46 percent. 

“Net sales of in-house and exclusive products accounted for 46.2 percent of total net sales for the period versus 44.1 percent for the same period in 2017,” the company said.

“Wilcon is on track to achieve its 2018 net sales target of mid to high teens and has already breached its product mix target of 46 percent net sales contribution from its higher margin products,” said Mark Andrew Belo, Wilcon chief finance officer. 

“We expect to sustain this momentum until the end of the year as we push for the timely opening of new stores and continued marketing efforts to boost comparable sales growth,” Belo added.

He said Wilconhas opened two new depots and one home essential format store so far this year, and seven more depots and one mall-based store are in various stages of construction. 

“Barring any unexpected external factors, we should be able to open the 11 stores planned for this year, which together with the stores opened in 2017, should help in the recovery of store expansion-related front-loaded costs for us to realize our projected mid-teens net income growth,” Belo added.
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