Wilcon Depot revenue up 23% on better profit margin

@WILCONDEPOT.PH

WILCON Depot, Inc. reported a 22.8% increase in net profit to P692 million in the fourth quarter of last year as the retailer’s gross profit margin improved thanks to higher contribution from its house brands.

“We delivered a stronger quarterly performance in the fourth quarter, which increased our net income for the year more than originally expected,” Wilcon Depot President and CEO Lorraine Belo-Cincochan said Thursday in an interview. a statement.

Net sales in the quarter increased 9.1% to 7.47 billion pesos from 6.84 billion pesos. The company said its depot-format stores accounted for the majority or 97.2% of net sales.

The contribution from depot stores increased by 9.3% or P616 million to P7.26 billion as the opening of three new depots during the quarter led to new store sales. Comparable sales “remained more or less stable” with a growth rate of 0.8%.

Home Essentials stores accounted for 1.9% or 130 million pesos of the company’s total net sales. Segment sales were down 7.8% or 12 million pesos year-on-year, with comparable sales also down 8%.

The company launched a new Home Essentials store in central Luzon in the fourth quarter.

Meanwhile, his project sales increased by 43.6% to reach 70 million pesos.

Wilcon Depot’s gross profit improved 21.2 percent in the fourth quarter, from 2.35 billion pesos to 2.84 billion pesos. The company had a gross profit margin of 38.1%, improving 381 basis points year over year” as exclusive and internal brands began their recovery contributing 50.1% from lower levels to 50% of the previous three quarters and to the contribution of 49.8% for the same period in 2020.

For 2021, the company recorded a 76.8% increase in revenue to 2.56 billion pesos from 1.45 billion pesos the previous year.

Wilcon Depot said this was “primarily due to increased net sales and gross profit margin expansion, partially offset by increased operating expenses.”

The company’s net sales for the year increased by 21.6% to reach 27.51 billion pesos while comparable sales increased by 12.1%. The company recorded improved sales performance after stores in Luzon remained open despite the surge in coronavirus disease 2019 (COVID-19) infections.

Sales from its consignment stores accounted for 97.4% or 26.79 billion pesos of the company’s net sales, while Home Essentials stores accounted for 1.9% at 530 million pesos.

Last year, Wilcon Depot launched 10 stores, nine of which are depot-format and one is a Home Essentials branch. The company spent 2.16 billion pesos in 2021, which was mainly used for the construction of new stores and warehouses.

Due to the expansion of its stores, the company’s operating expenses increased by 16.8% to reach 7.2 billion pesos.

“We plan to add a minimum of eight stores in 2022 in line with our goal of having 100 stores by the end of 2025,” Ms Belo-Cincochan said.

“If the COVID-19 situation continues to improve over the course of the year, we expect private construction to normalize and our annual sales growth to stabilize and return to the pre-COVID-19 trend. pandemic,” she added.

Wilcon Depot shares on the stock exchange fell 1.41% or 40 centavos to close at P27.90 each. — Keren Concepcion G. Valmonte

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