Wilcon Q1 profit up 4.9% as sales reach P9.17B

LISTED construction supplies retailer Wilcon Depot, Inc. recorded a 4.9% increase in its first-quarter (Q1) net income to P563 million, as net sales rose 9.1% to P9.17 billion.

Net sales growth was supported by a 4.7% increase in comparable sales and contributions from newly opened branches, the company said in a statement on Tuesday.

Wilcon said it remains on track to open eight stores in 2026, with five more in various stages of construction. During the quarter, the company opened three new depot-format branches in Luzon.

“We have opened three in the first quarter, and we intend to finish the five remaining new stores as these are already in various stages of construction. While the situation in the Middle East creates some uncertainty and may temporarily disrupt our growth trajectory, we’re confident in our direction and the resilience of our business,” Wilcon President and Chief Executive Officer Lorraine Belo-Cincochan said.

“We’re staying agile and prudent, as always, and are prepared to navigate any headwinds that come our way,” she added.

Sales from depot stores accounted for the bulk of revenues at P8.83 billion, or 96.3% of total net sales, up 8.8%. Do-It-Wilcon (DIW) stores contributed P285 million, up 10.4%, while project sales rose 62.9% to P56 million.

“We are pleased to report sustained positive same-store sales growth for the third successive quarter. Overall sales results exceeded our expectations, particularly in March, which faced a challenging high-base comparison from the prior year,” Ms. Belo-Cincochan said.

“This outperformance may have partly been driven by advance purchases from customers with ongoing projects, who accelerated buying in anticipation of potential price increases linked to rising oil prices amid the ongoing conflict in the Middle East,” she added.

Gross profit rose 4% to P3.394 billion, while gross margin slipped to 37% as sales growth was driven by lower-margin products. The contribution from exclusive and in-house brands declined to 51.7%.

Operating expenses increased 4.1% to P2.77 billion, mainly due to higher depreciation related to new stores, as well as increases in utilities, logistics, and outsourced services.

Operating other income rose 6.8% to P103 million, driven by higher supplier-related fees and rental income. Total other income, including interest income, increased 8.7% to P120 million.

Capital expenditures for the quarter reached P417 million, representing 16.1% of the company’s full-year budget of P2.59 billion. — Alexandria Grace C. Magno