Wilcon Depot Inc., a leading home improvement and construction supplies retailer, said Thursday second-quarter net income jumped 56.4 percent to P1 billion from the same period last year on the back of strong sales.
Wilcon, in a disclosure to the stock exchange, attributed the strong second-quarter performance to higher volume of business and improved gross profit margin which helped offset the increase in operating expenses.
Net sales grew 22.8 percent to P8.3 billion, on fewer pandemic-related disruptions in the second quarter compared to the same period last year.
Wilcon said the opening of two new stores in the second quarter contributed to higher sales in the period. Wilcon had 76 stores in its network as of end-June.
“We built on our strong first-quarter start and delivered our best quarter net sales and earnings so far this second quarter,” said Wilcon president and chief executive Lorraine Belo-Cincochan.
“We maintained our strategic focus and remained committed to delivering the widest array of home improvement and finishing construction products and consistent excellent customer service despite the continued operating and supply chain challenges,” she said.
Operating expenditures, including lease-related interest expenses, grew 14.4 percent year-on-year to P1.96 billion because of inflation and bigger volume of business from both old and new stores.
The strong second-quarter performance boosted Wilcon’s net income in the first half to P1.85 billion, up 49 percent from a year ago. First-half net sales also increased 18.7 percent to P15.9 billion.
Belo-Cincochan said the company was on track to meeting its target of opening eight new stores this year. Wilcon opened one depot in Ilocos Sur and another Home Essentials in Tagaytay in July.
“With the improving performance of stores in areas that were more frequently disrupted by mobility restrictions last year, we expect our net sales to grow by at least high teens and our comparable sales by high-single digit to low teens for the full year 2022,” Belo-Cincochan said.