WILCON Depot Inc. said profit for the first quarter the year reached P328 million, down 32.1 percent from P484 million last year.
Sales amounted to P5.591 billion, down 2.5 percent from last year’s P5.734 billion.
Wilcon said it is not likely to hit its goal for the yeatr of growing in the mid-teens since the enhanced community quarantine has led to the closure of all its 44 branches in Luzon.
Gross profit was reported at P1.891 billion, up 3.1 percent, mainly due to the 50.9 percent the contribution of the higher-margin exclusive and in-house products to total net sales, compared to 48.8 percent in 2019. Gross profit margin was at 33.8 percent for the quarter.
The company said it recorded a 19.7 percent in crease in operating expense P1.433 billion, mainly due to the increase in lease and manpower related expenses.
“Also, Wilcon’s adjustment across-the-board of the salaries of all employees effective April 1, 2019 plus the hiring and promotion of personnel for its new branches drove upwards operating costs year-on-year,” it said.
Depots recorded P5.375 billion in net sales comprising 96.1 percent of the total, down 2.4 percent. Same store sales growth (SSSG) for depots was negative 8.1 percent. Pre-CQ/ECQ, SSSG of depots reached 10.3 percent.
Wilcon expects a relatively faster recovery when mobility restrictions are lifted with pent-up demand from unfinished construction projects and new demand from the renovation, repair and maintenance market given the wear-and-tear of homes and household items during ECQ and new sanitation and health standards of the new normal.
