Wilcon Depot Inc., the country’s leading home improvement and finishing construction supply retailer, said it is studying plans to expand its footprint across Southeast Asia.
Wilcon president and chief executive Lorraine Belo-Cincochan said in a news briefing Monday following the company’s annual stockholders meeting that overseas expansion is under discussion, but it not a part of the group’s immediate plans.
“This is something we discuss and ultimately we do want to plan for it. If ever, it is not yet in the immediate future,” Belo-Cincochan said.
She said that in venturing outside the country, the company would study the different local companies that expanded overseas and became successful.
“We will study other companies that expanded overseas and learn how they became successful,” she said.
Wilcon said the home improvement industry continued to face challenges as sales were affected by high interest rates and delay in construction projects.
The company is still aiming to surpass last year’s net income of P3.48 billion even as first-quarter profit fell 23.1 percent on lower sales and higher expenses.
It said that from January to March this year, net income amounted to P740 million, down from P962 million in the same period last year as net sales also declined 2.5 percent year-on-year to P8.31 billion.
Wilcon head of investor relations Mary Jean Algier said the company might also recognize a one-time loss as one of its stores in Bulacan caught fire in April this year.
The timing of the recognition would depend on the official assessment. The one-time loss may be reversed once it files for insurance claim.
Algier said overall market conditions is also expected to recover in the second half when interest rates are expected to go down, which would boost consumer and business confidence.
Wilcon earmarked P2.2 billion for 2024 capital expenditures primarily to open new big depots and Do-It-Wilcon (DIW) stores.
It is also on track to reach 100 stores within the year as it plans to open two DIW branches and eight Wilcon depot outlets this year. It ended 2023 with 90 stores.