Wilcon Depot, Inc. (Wilcon), the Philippines’ leading home improvement and construction finishing retailer, reported its first quarter 2025 financial results, showing modest sales growth but a notable decline in net income.
Net sales rose 1.2% year-on-year to ₱8.408 billion, primarily driven by contributions from newly opened stores. However, net income dropped by 27.5% to ₱536 million, down ₱204 million from the same period last year, due to lower gross profit and increased operating expenses.
“While our bottom line was affected by weak sales in the first two months of the year, we are optimistic about a rebound in the second half,” said Wilcon President and CEO Lorraine Belo-Cincochan. “Encouraging average daily sales around the long Easter holidays suggest a possible turnaround. If this trend continues or strengthens, we expect to recover the earnings shortfall later in the year.”
Belo-Cincochan also expressed confidence in the company’s newer branches: “We’re particularly encouraged by the performance of our stores under one year old. Despite a soft market, these locations collectively turned a profit this quarter after reporting losses throughout 2024. This may signal a sustainable upward trend in sales.”
Key Highlights:
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Net Sales: ₱8.408 billion, up 1.2% or ₱98 million year-on-year, driven by new stores. However, same-store sales fell by 3.6%.
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Store Expansion: Two new branches were opened—one full-format depot in North Luzon and one Do-It-Wilcon (DIW) store in Metro Manila—bringing the total store count to 102.
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Depot Format: Accounted for 96.5% of total net sales at ₱8.116 billion, up 1.8%. Same-store sales declined 3.1%.
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DIW Format: Represented 3.1% of total sales, with ₱258 million in revenue—an 11.1% increase. Same-store sales rose 7.4%.
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Project Sales: Contributed just 0.4% of total revenue, down 67.2% due to the absence of large-scale projects. Wilcon plans to integrate project sales into depot results if contributions remain under 1%.
Profitability and Cost Trends:
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Gross Profit: Declined 1.7% or ₱56 million to ₱3.264 billion, due to margin contraction in both exclusive and non-exclusive product categories, impacted by strong demand for “best deals” promotions.
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Exclusive and In-House Brands: Contributed 52.2% to total sales, slightly down from 52.6%, largely due to lower project sales.
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Operating Expenses: Increased 7.8% or ₱192 million to ₱2.663 billion, mainly due to higher depreciation, lease-related interest on new store leases, and salary increases. These were partially offset by lower trucking and short-term rent costs.
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Other Income: Totaled ₱110 million, down 19.4% or ₱26 million year-on-year, mainly due to timing in supplier support collections and lower rental income. Delivery fees and other charges increased 61.6% or ₱15 million.
