Higher sales amid more relaxed restrictions lift Wilcon Depot's Jan-Sept income past ₱1.8B

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Metro Manila (CNN Philippines, October 27) — Wilcon Depot saw earnings spike from January to September, thanks to higher sales during the period given relatively looser quarantine restrictions, it reported on Wednesday.

In a regulatory filing, the home and construction essentials retailer disclosed a net income of ₱622 million for the third quarter of 2021 — a 16.7% annual growth.

It brought Wilcon’s income for the nine-month period ending in September to ₱1.87 billion, way up from the ₱984 million last year.

The listed firm attributed the larger figure to “higher net sales and gross profit margin partly offset by increased operating expenses.”

Net sales during the timeframe rose to ₱20.04 billion, climbing by 27% annually, according to Wilcon.

“Generally uninterrupted operations particularly of stores in Luzon, which resulted in higher number of transactions mainly drove the sales increase,” said the company, noting that stores were not required to close despite Metro Manila and neighboring provinces reverting to lockdowns twice this year.

Given the return of strict quarantine measures, however, net sales during the third quarter slightly dropped by 1.9% to ₱6.6 billion.

With the company opening six new depots during the first three quarters of 2021, Wilcon reported a 16.7% rise in operating expenses, settling at ₱741 million.

Rent and other net income reached ₱218 million or an 11.3% year-on-year increase while interest income plummeted by 47.7% to ₱24 million because of “lower investible funds,” the disclosure stated.

Wilcon shall push through with its expansion plans — an additional Home Essentials branch along with nine new depots — according to its chief executive officer and president Lorraine Belo-Cincochan.

The company has likewise incurred ₱1.84 billion in capital expenditure as of end-September, she added.

“Hopefully, with the easing of restrictions as COVID-19 cases decline, our customers will be able to finish or start their home improvement projects in time for the Christmas holidays,” said Belo-Cincochan.

“We’re looking forward to a better fourth quarter,” she added.

Wilcon shares finished at ₱31.65 apiece on Wednesday, up by 6.21% from yesterday’s close.