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Wilcon Nets P1.8B Income
- By The Financial District
- Oct 27, 2021
- 2 min read
Wilcon Depot, Inc. (WILCON) today reported a nine-month 2021 net income of P1.870 billion, up 111.1% or P984 million from the same period last year.
Photo Insert: Wilcon Depot, Bacoor, Cavite City
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 P20.048 billion, 27.0% or P4.259 billion higher than the same period last year.
Generally uninterrupted operations particularly of stores in Luzon, which resulted in a higher number of transactions mainly drove the sales increase.
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% for the period.
Net sales for the third quarter, on the other hand, slipped 1.9% or P127 million to close at P6.622 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% 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 P7.432 billion for a gross profit margin rate of 37.1%, increasing by 36.7% or P1.996 billion year-on-year. od to close at P24 million due to lower investible fund.
