Wilcon Depot, Inc. reported a 111.1 percent surge in net income to P1.87 billion in the first nine months of 2021 from the P885.57 million earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said the increase was driven by higher net sales and gross profit margin partly offset by increased operating expenses.
Net sales for the nine-month period reached P20.05 billion, 27.0 percent more than the P15.99 billion generated in the same period last year.
“Generally uninterrupted operations particularly of stores in Luzon, which resulted in higher number of transactions mainly drove the sales increase,” Wilcon said.
For 2021, the Philippine government placed Metro Manila and nearby provinces on the strictest quarantine level twice but unlike last year, the stores were not required to close. Comparable sales grew 16.9 percent for the period.
Net sales for the third quarter, on the other hand, slipped 1.9 percent to P6.62 billion in view of the almost two months of mobility restrictions as the Philippines recorded the highest number of daily cases, so far since the pandemic started, during this period.
Comparable sales dropped by 9.3 percent in view of the prolonged imposition of quarantine measures and the elevated number of Covid-19 cases versus last year.
A total of six depots were opened during the nine-month period, two of which were opened in the third quarter. To date, seven depots and one Home Essentials have been opened with the last two branches, one Home Essentials and one depot, opening back-to-back on October 15, 2021.
Gross profits for the nine-month and third quarter 2021 periods both grew driven by higher margins of the in-house/exclusive brands since margins particularly of stores farther from Metro Manila expanded as pass-on logistics cost increased.
Gross profit for the nine-month period amounted to P7.43 billion for a gross profit margin rate of 37.1 percent, increasing by 36.7 percent year-on-year.
For the third quarter, gross profit reached P2.52 billion for a gross profit margin rate of 38.0 percent, growing by 8.8 percent versus the same period last year.
Rent and net other income totaled P218 million and P85 million for the nine-month 2021 and third quarter periods, respectively. For the nine-month 2021 period, rent and net other income grew 11.3 percent while, for the third quarter, it grew 37.6 percent.
Interest income dropped 47.7 percent for the nine-month 2021 period to close at P24 million due to lower investible funds.
Wilcon President and CEO Lorraine Belo-Cincochan said that the company will continue with its expansion plans, opening an additional Home Essentials branch for this year on top of the planned nine new depots.
She added that the company spent a total of P1.848 billion in capital expenditure as of the end of the third quarter.
“Hopefully, with the easing of restrictions as Covid-19 cases decline, our customers will be able to finish or start their home improvement projects in time for the Christmas holidays. We’re looking forward to a better fourth quarter.” Belo-Cincochan said.