Wilcon Depot, Inc.
Wilcon Depot, Inc., (WLCON) was incorporated on December 17, 2015 as a home improvement and construction supplies retailer. WLCON is a subsidiary of Wilcon Corporation, formerly Wilcon Builder's Depot, Inc., which opened its first branch in 1977 along Quezon Avenue in Quezon City.

The Company operates its business and offers its products via two retail formats - the depot store format and the home essentials store format. WLCON has a wide array of product offerings which include local and international brands of tiles and flooring, plumbing and sanitary wares, electrical and lighting products, hardware and tools, furniture, furnishings and houseware, paints, and building materials, among others.

The Company currently operates 36 stores nationwide, 30 of which are depots located in major cities in the country, while two are mall-based and four are stand-alone home essentials stores.

Source: Prospectus (2017)

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Wilcon Depot books P887M in April-Dec.

WILCON Depot, Inc. (WDI) netted P887 million in the last nine months of 2016 after the home improvement and construction supplies retailer launched new stores to boost sales and took advantage of supplier discounts.
Net sales reached P12.3 billion in the April to December period, 96.7% of which was generated by its depot format stores, WDI Chief Financial Officer Mark Andrew Y. Belo said in a disclosure to the stock exchange on Wednesday.

The company could not provide details about its full-year financial performance since WDI only began operations on April 1, 2016 when the retail business and assets were completely transferred from parent company Wilcon Corp., formerly Wilcon Builder’s Depot, Inc.

Prior to the transfer of the retail operations, the parent company booked a net profit of P269 million and net sales of P3.7 billion based on audited statements for the three-month period ending March.

Sales in the nine-month period got a lift from the opening of two new stores in Molino, Cavite and Sta. Rosa, Laguna in September last year.

These areas enjoyed a boom in real estate development particularly in the horizontal housing segment, which is Wilcon’s natural market, Mr. Belo said.

Gross profit amounted to P3.3 billion, translating to a gross margin of 26.8%, while operating profit reached P1.04 billion for an operating margin of 8.5%.

“During the year, we have also maximized the rebates and discounts available to us from our suppliers as we reached most and even exceeded some of our sales volume targets. This contributed to our margins and consequently bumped up our net income as we have also efficiently managed our operating expenses,” Mr. Belo said.

WDI likewise introduced new initiatives this year, including the expansion of its own brands in product categories with strong market potential.

“We hope that these initiatives along with our planned store expansion will bear fruit and sustain our growth trajectory in the next few years,” Mr. Belo said.

WDI made its debut on the Philippine Stock Exchange last month after raising P7 billion from the sale of 34% of its total issued and outstanding shares at P5.05 per share.

source: http://www.bworldonline.com/content.php?...&id=144356


Wilcon to open 9 stores this year

WILCON Depot, Inc. is accelerating its five-year expansion plan by targeting nine-store opening this year, allowing it to hit its goal of 65 stores one year ahead of schedule.

“We have many funds sitting in the bank, and all the sites are ready. The economy is really moving up quite good, so we’re capitalizing on that. And also its to stay ahead of competition,” Wilcon Founder and Chairman Emeritus William T. Belo said in a briefing after the company’s annual shareholders’ meeting in Ortigas Center on Monday.

The listed home improvement and construction supply retailer announced in 2017 its plan to open 29 new stores by 2021. Of this, 16 will be located in Luzon, five in Visayas, and eight in Mindanao.

So far, Wilcon has already opened five stores last year and another two during the first half of 2018. Starting this June, the company will be opening a new store every month to reach nine by the end of the year.

Wilcon has scheduled seven store openings in 2019, and another eight by 2020, for a total of 65 stores in the next two years.

Each store will cost about P180 million, and up to P250 million, including inventory. The company has P4 billion worth of funds left for its store expansion, taken from the proceeds of its P7-billion initial public offering last year.

Amid the aggressive store expansion, Wilcon also looks to add high-margin products to its portfolio to improve its profits.

“This will add on our product lines that will give us better margins like lighting fixtures… And we are still getting into appliances, and the PPR (polypropylene random) pipings. These are the three major product categories that we want to focus in the next three years,” Mr. Belo said.

These new offerings are expected to lift gross profit margins to 31% this year, versus 29.7% in 2017.

This year, Wilcon expects its net income to grow by mid-teens, helped by a top-line growth of mid- to high-teens. This will be supported by a 5% projected growth in same store sales. For the first quarter alone, Wilcon has already recorded a 5.2% same-store sales growth.

“So there’s quite a possibility that we might exceed the 5% given that we’ve already hit the 5.2% despite the first quarter being a weak quarter,” Wilcon Investor Relations Officer Mary Jean G. Alger said during the briefing.

Asked how the company will be affected by the weakening peso, Mr. Belo noted no immediate effects since most imports have been in their inventory for six to seven months.

“The price increase that we have been doing for the year doesn’t really increase significantly. That’s the beauty of having more inventory. The increase gradually comes, we spread it out with the ones that we have so we do average it,” Mr. Belo said.

Meanwhile, the company said it will be launching an e-commerce platform by the end of the year. The online store is set to complement Wilcon’s brick and mortar business, with its initial phase to be made available to Metro Manila customers only.

“We expect the e-commerce platform to contribute to enhancing sales of our stores… We want to drive customers to get to know Wilcon, those that go online. Because we’ll be able to provide a ‘pay online, pick up service’, so we want to be able to drive customers into our stores and see what we have to offer,” Wilcon President and Chief Executive Officer Lorraine Belo-Cincochan said during the briefing.

Wilcon will offer DIY (do-it-yourself) products and electrical items typically needed in houses or condo units, among others, on its online platform.

source: http://bworldonline.com/wilcon-to-open-9...this-year/


...I hope construction remains bullish pa rin otherwise tatamaan ito

Wilcon stores sales build up its earnings

EARNINGS of Wilcon Depot, Inc. went up by a fifth in the first six months of 2018, fueled by higher sales from existing stores alongside its expansion to new markets.

The listed firm said in a statement on Friday that net income jumped to P914 million in the first half, versus P763 million in the same period a year ago. Net sales logged an 18% increase to P10 billion.

The company attributed the increase to strong comparable sales, the development of new stores, and improving margins following its product mix strategy.

“Wilcon is looking at maintaining its 2018 net sales target growth rate of mid to high teens. While we have achieved our target for the first half, we have to continue to work hard in the second half to sustain our momentum,” Wilcon Chief Financial Officer Mark Andrew Belo was quoted as saying in a statement.

The performance of its depot-format stores accounted for 97% of Wilcon’s total sales at P9.7 billion, 18% higher year-on-year. The company opened three new depots in the second quarter alone, and saw better than expected growth from old depots.

The 3% balance of net sales came from Wilcon’s smaller format stores — called Home Essentials — provided P304 million from the period from January to June. While two new Home Essentials stores were put up in the first half, the segment’s 12% uptick can be attributed to old stores, which recorded same stores sales growth of 11.4%.

Wilcon is scheduled to open five more depots by the end of the year, in order to reach its 2018 target of 51 stores.

“As we are on track to achieve our sales growth target, we are likewise optimistic that we will achieve our mid-teens net income growth target,” Mr. Belo said.

source: http://www.bworldonline.com/wilcon-store...-earnings/


...price of WLCON doing well since IPO

Wilcon earnings jump 24% in 9 months

EARNINGS of Wilcon Depot, Inc. rose by 24% in the first nine months of 2018, lifted by its store expansion complemented by strong same-store sales.

In a statement issued Thursday, the listed firm booked a net income of P1.39 billion from January to September, following a 17.9% uptick in net sales to P15.36 billion.

Net income reached P475 million during the third quarter alone, after a 17.8% increase at the top line to P5.36 billion.

The company opened seven new Wilcon branches and two home essential stores in the first nine months of the year, contributing P521 million in net sales for the quarter. Meanwhile, same-store sales growth stood at 8.6% from July to September.

It plans to open four more depots in the fourth quarter, for a total of 51 stores this year.

“Because of the continued healthy sales growth in the third quarter and anticipating the continued contribution of newly opened stores in the fourth quarter, Wilcon is looking to exceed its mid-teens 2018 net income growth target despite the expected continuing inflationary cost pressures,” Wilcon Chief Finance Officer Mark Andrew Y. Belo said in a statement. 

source: https://www.bworldonline.com/wilcon-earn...-9-months/


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