WILCON Depot, Inc. earned P642.97million in the second quarter, up from P23.87million a year earlier, as sales rebounded as the listed retailer’s branches remained open despite the lockdown of the pandemic.
He also attributed the rise in profits nearly 27 times a year – to the expansion of its gross profit margin.
“We are pleased to have been able to maintain our first quarter results despite a fairly difficult April, which was the culmination of the RCN (National Capital Region) Plus quarantine,” said the President and Chief Executive Officer of the management of Wilcon, Lorraine Belo-Cincochan.
Meanwhile, sales for the quarter improved 95.7% to 6.75 billion pesos from last year’s 3.45 billion pesos due to the increase in the number of transactions, in especially in branches in Luzon. Its comparable sales increased by 79.7% over the period.
The company, which sells home improvement and construction supplies, ended the quarter with 67 stores, having opened two new branches in the quarter.
Ms. Belo-Cincochan added that “the remaining five new stores scheduled to open for the year are on track.” Wilcon Depot will open a store on Friday in the province of Sorsogon, in the Bicol region.
Gross profit for the second quarter was P2.49 billion, 102.5% higher than the P1.23 billion it recorded last year.
âThe increase is due to higher sales and gross profit margin, which reached 36.9% in the quarter,â said Wilcon Depot.
For the six-month period ending June 30, Wilcon Depot’s net income jumped 254% to P1.25 billion. First half net sales amounted to 13.43 billion pesos, up 48.5% from 9.04 billion pesos.
“Comparable sales increased by 36.4%, attributed mainly to the increase in the number of transactions, especially at branches located in LuÃ§on, unlike 2020, which remained open this year as part of the NCR bubble quarantine program. More, âsaid Wilcon Depot.
Sales from its deposits improved 49.6% to P13.068 billion, representing 97.3% of the company’s total net sales.
Meanwhile, the smaller Home Essentials stores posted net sales growth of 24.2% to generate P 267 million in the first half, accounting for 2% of Wilcon Depot’s total net sales. Project sales also increased 2.1% year-on-year to 91 million pesos, representing 0.7% of total net sales.
Wilcon Depot posted a 57.4% growth in gross profit for the six-month period to 4.91 billion pesos from 3.12 billion pesos in the same half last year.
âThe 210 basis point gross profit expansion is mainly due to changes in the product line within the classification of exclusive and house brands, which resulted in a higher overall margin for the class, in part. offset by their lower contribution to total net sales to 49.4% from 51.2% during the same period in 2020, âthe company said.
Wilcon Depot shares on the exchange rose 5.77% or P1.20 to close at P22 each on Wednesday.
“[It] was the main winner of the day after reporting incredible profits for the first six months of 2021, âChristopher John Mangun, chief research officer of AAA Southeast Equities, Inc. said in an email.
“It is one of the few companies to have surpassed the pre-pandemic levels of 2019,” he added.
In the second quarter of 2019, the company recorded a net profit of 510.92 million pesos, while it generated net sales worth 6.04 billion pesos.
Wilcon Depot’s net profit for the first half of 2019 reached 994.55 million pesos, while its net sales were 11.78 billion pesos. – Keren Concepcion G. Valmonte