Wilcon posts ₱887M net income for April-December 2016
Posted April 26, 2017, 9:52 am
Wilcon Depot, Inc. (Wilcon/WDI) today reported 2016 earnings of 887 million, covering the nine months of operations from April to December. “We are pleased to announce that we finished the year strong, both in our top and bottom lines. Our nine-month net sales reached 12.3 billion, 96.7% of which was generated by our depot format stores,” Mark Andrew Belo, Chief Financial Officer of WDI said. WDI’s gross profit amounted to 3.3 billion for a gross margin of 26.8% while operating profit (or earnings before interest and tax) reached 1.04 billion for an operating margin of 8.5%.
WDI began operations on April 1, 2016 when the retail business and assets were completely transferred from parent company Wilcon Corporation (formerly Wilcon Builder’s Depot, Inc.). Prior to the transfer of the retail operations, Wilcon Corporation, registered net sales of 3.7 billion and net income of 269 million based on its audited statements for the three-month period ended March 31, 2016.
Mr. Belo further added, “Sales from our existing stores were augmented by the opening of two new stores in 2016, one in Molino, Cavite in April and another in Sta. Rosa, Laguna in September. These areas have seen remarkable growth in real estate development particularly in the horizontal housing segment, Wilcon’s natural market. These stores along with the existing ones in the same region are expected to contribute more to the Company’s revenues in many years to come given the demographics of their locations.”
“During the year, we have also maximized the rebates and discounts available to us from our suppliers as we reached most and even exceeded some of our sales volume targets. This contributed to our margins and consequently bumped up our net income as we have also efficiently managed our operating expenses.”
Mr. Belo in closing mentioned, “We have initiated and closed a number of initiatives this year, including expansion of our own brands in product categories where we saw the market potential. We hope that these initiatives along with our planned store expansion will bear fruit and sustain our growth trajectory in the next few years.”
Wilcon Depot, Inc. with ticker symbol “WLCON” was listed on the Philippine Stock Exchange on March 31, 2017, offering 1,393,906,200 of its primary shares, representing 34% of its total issued and outstanding shares post-listing, at 5.05 per share.