Wilcon Depot Inc., a leading home improvement and construction supply retailer, said net income rose 15.8 percent in 2019 to P2.12 billion from P1.83 billion a year ago on double-digit growth in sales.
Wilcon said Wednesday in a disclosure to the stock exchange net sales increased 16.3 percent to P24.47 billion on store expansion and a 5.2-percent same store sales growth.
Wilcon in 2019 added six new depots that increased the group’s store tally to 57.
“We are pleased with our full year 2019 results and it was another strong one for us with our net income growing 15.8% to ₱2.125 billion from 2018 post changes in accounting policies and standards,” said Wilcon president and chief executive Lorraine Belo-Cincochan.
“Coming off a high base, we had a respectable topline growth and the margin improvement we gained from our product mix strategy cushioned the spike in our operating expenses as we had planned,” she said.
Belo-Cincochan said Wilcon would spend P2.9 billion in 2020 to finance the opening of eight to nine new stores and the renovation of other outlets to sustain the company’s growth. Wilcon will have at least 65 stores by the end of this year.
The company seeks to maintain a mid-teen topline and net income growth in 2020 as well as a steady five- to six-percent comparable sales growth.
Depots in 2019 comprised 95.9 percent of net sales totaling ₱23.469 billion generated from 50 branches. Depot sales rose 16.5 percent while same store sales climbed five percent.
Sales from the smaller format accounted for 2.7 percent, rising 6.2 percent with a same store sales growth of four percent.
Operating expenses in 2019, including re-classified rent expense to interest expense, rose 22.1 percent to P5.39 billion due to changes in accounting policies and standards, and expansion-related expenses.
Wilcon, meanwhile, said its board of directors approved a regular dividend of ₱0.12 per share and a special dividend of ₱0.06 for a total cash dividend of ₱0.18.