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Wilcon H1 net income down to P1.163B

Listed home improvement and finishing construction supplies retailer Wilcon Depot Inc. posted a 23% drop in its first-half net income, dragged by lower same-store sales while operating expenses increased during the period. In a regulatory filing, Wilcon said its net income fell to P1.163 billion, as net sales declined by 0.4% to P17.109 billion on the back of slower foot traffic which the company attributed to the elections, similar to the effect seen in April during the long Easter holidays. 'It was mainly during the long holidays in April and May that foot traffic was affected, as expected. We've already implemented measures on the cost and expense fronts. We re-configured some of our processes and adjusted employed resources such as manpower and equipment, to minimize the growth or even reduce certain expense items,' Wilcon president and CEO Lorraine Belo-Cincochan said. 'While some impact of the measures we've implemented will be spread out up to next year, we are already seeing improvements especially in trucking. If sales growth rates continue to trend upward and we are able to control increases in some expense items, we are expecting to reverse the net income decline in the first half,' she added. First-half gross profit fell by 3.3% to P226 million, while operating expenses increased by 4.1% to P5.286 billion due to the hike in depreciation and amortization for new stores, supplies, utilities, and salaries which were partly offset by the decrease in trucking and rent. Second-quarter net income was reported at P626 million, reflecting an 18.7% drop. Net sales for the quarter dropped 1.9% to P8.701 billion, while gross income fell 4.8% to P3.349 billion, and operating expenses rose by 3.3% to P2.520 billion. Wilcon operates its business and offers its products through two retail formats — the depot store format and the home essentials format It ended June with 103 total operating stores, after opening three new stores in the first half. It also reopened the depot that was burned down in April 2024 in June. Shares in Wilcon closed Tuesday at P9.85 apiece, up by 4 centavos or 0.41% from Monday's finish of P9.81 per share. —VAL, GMA Integrated News