Consumers’ appetite for home improvement remained strong despite the pandemic as Belo-led Wilcon Depot Inc. saw its net income surge 84% in the first quarter on robust sales.
The country’s leading home and finishing construction supply retailer said earnings jumped to ₱604 million on the back of a 19.4% hike in net sales and gross profit margin expansion even as interest and net other income declined and operating expenses increased.
Net sales increased to ₱1.085 billion due to higher transaction count particularly of stores in Luzon. All branches remained open despite the re-imposition of the enhanced community quarantine (ECQ) in Metro Manila and nearby provinces starting from the last week of March.
During the quarter, two new depots were opened, one in Metro Manila and the other in the Visayas.
“We now have 65 stores, fulfilling our IPO commitment ahead of schedule. Moving forward, we have placed adequate flexibility in our expansion plans, should market conditions warrant a shift – either it be a pause or an acceleration,” said Lorraine Belo-Cincochan, CEO and president of Wilcon.
Of the total sales, the depot format stores contributed 97.2 percent, growing by 20.7 percent or ₱1.113 billion to ₱6.49 billion for the quarter.
Sales from home essentials reached P140 million, up 2.1 percent from the previous year.
Project sales’ contribution accounted for the remaining 0.7 percent totaling ₱48 million.