Wilcon Depot posts ₱2.13-B net income, to pay cash dividends

Published February 26, 2020, 12:00 AM

by manilabulletin_admin

By JAMES A. LOYOLA

Wilcon Depot, Inc., a listed construction supplies and home improvement store chain, reported a 15.8 percent growth in net income to ₱2.13 billion last year from ₱1.84 billion in 2018.

“We are pleased with our full year 2019 results and it was another strong one for us… Coming off a high base, we had a respectable topline growth and the margin improvement we gained from our product mix strategy cushioned the spike in our operating expenses as we had planned,” said Wilcon Depot President and CEO Lorraine Belo-Cincochan.

She added that, “These results certainly will encourage us more to continue in our strategic direction and give us assurance that we can deliver consistent growth in the coming years.”

Because of this strong showing and amid expectation that the firm will be able to maintain its growth trajectory, the Wilcon Board of Directors approved a regular dividend of ₱0.12 per share and a special dividend of ₱0.06 for a total cash dividend of ₱0.18 per share.

This represents a 12.5 percent increase over 2019’s dividend payout of ₱0.16 per share.

Net sales grew 16.3 percent to ₱24.48 billion for 2019 at the back of a steady ramp up of the new stores which contributed ₱2.33 billion or 67.9 percent of the total increase and comparable sales growth of 5.2 percent for the full year.

The depots comprised 95.9 percent of net sales totaling ₱23.47 billion generated from 50 branches. Depot sales rose by 16.5 percent with a same store sales growth of 5.0 percent.

Sales from the smaller format, Home Essentials, accounted for 2.7 percent or ₱658 million of net sales, growing by 6.2 percent in total with a same store sales growth of 4.0 percent.

Project sales, meanwhile, accounted for the remaining 1.4 percent or ₱349 million, growing 28.6 percent year-on-year.

Belo-Cincochan said, “For 2020, we have budgeted around ₱2.9 billion in capital expenditures to fund the construction of new stores, more renovations and extensions as we are upgrading some old branches for these to be at par with our new stores and others. We are targeting to maintain a mid-teen topline and net income growth for 2020 as well as a steady five to six percent comparable sales growth.”

 
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