Wilcon Posts strong ₱762.7M net income for 1H2017
Posted September 18, 2017, 2:07 pm
Wilcon Depot Inc.’s (PSE:WLCON) second quarter 2017 net income of P371.9M pushed its earnings tally for the year to P762.7M. The continued strong showing comes at the back of another quarter of net sales breaching the P4.0B mark. The Company generated net sales of P4.3B in the second quarter for a total first half result of P8.5B. This represents a 10.5% hike over net sales in the same period last year which totaled P7.7B. This includes the 2016 first quarter’s operations, which was still under Wilcon’s parent company, Wilcon Corporation, according to Mr. Mark Belo, Wilcon Depot’s CFO.
Sales from depot format stores still dominated with 96.8% while the home essential stores contributed 3.2% of the first half’s net sales. Meanwhile, the four stores that opened in 2016 and 2017 contributed P469.8M or 5.5% of the first half’s sales and the existing stores prior to 2016 contributed 94.5% or P8.0B of the total. Mr. Belo added that same store sales growth for the first half settled at 5.7%, which is slightly higher than what was expected for the year.
Gross profit margin (GPM) for the first half was maintained at 30.16%, almost level with the first quarter’s 30.17%. The sales percentage contribution of higher margin products to total sales was likewise sustained. This year’s first half GPM is higher than last year’s first half GPM of 26.6%, which includes first quarter results under Wilcon Corporation, again as a result of the improved sales performance of higher margin products. Our EBIT margin for the first half reached 11.5% while our EBITDA margin closed at 12.1%.
Mr. Belo, in closing, said that Wilcon is pushing to open more stores towards the last quarter of the year. As the new stores continue to gain traction, and existing stores perform to expected results, hopefully, the Company’s growth momentum will continue through 2018 and beyond.