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Wilcon Depot notches P1.39-B net income.

By James A. Loyola

Wilcon Depot, Inc. reported a net income of P1.39 billion generated from net sales of P17.748 billion at the close of 2017.

In a disclosure to the Philippine Stock Exchange, the firm said net income for 2016 tallied at P886.8 million from net sales of P12.3 billion but covering just three quarters of operations from April 1, 2016, when the retail business was transferred from the parent, Wilcon Corporation.

Taking into account the 2016 first quarter results under the parent company, net sales improved by 11.2 percent from P15.97 billion to P17.75 billion by the end of 2017.

"The strong results were driven by a consistent same store sales growth of 6.0 percent and the opening of five new depots in first class cities outside Metro Manila," said Wilcon Chief Finance Officer Mark Andrew Belo.

He noted that, "sales from these five stores already comprised 2.5 percent of total sales for the year notwithstanding that all but one started operating in the second half of the year.

Comparable sales grew at a steady 6.0 percent for two years in a row following sustained marketing efforts and continuous store improvements.

The Company's flagship format, the depot, accounted for 96.9 percent or P17.2 billion, while sales generated by the smaller home essentials format stores comprised the remaining 3.1 percent or P550 million of total sales.

"We attained our target margin expansion for 2017 with a 29.7 percent gross profit margin primarily by increasing the contribution to total sales of our higher margin products and more efficient sourcing process to achieve timely sales incentives and purchase discounts. Gross profit margin in 2016 including the first quarter operations was 27.4 percent," Belo said.

He added that, "the improved gross profit margin more than made up for the rise in operating expenses, brought about mainly by the accumulation of front-loaded expenses associated with new store openings."


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Title Annotation:Business News
Publication:Manila Bulletin
Date:Apr 16, 2018
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