Wilcon Depot Reports P536 Million Net Income for 1Q 2025

​Wilcon Depot, Inc. (Wilcon), the country’s leading home improvement and finishing construction supply retailer, today posted its first quarter 2025 results. Net sales of P8.408 billion was 1.2% higher year-on-year traced mainly to sales from new stores. Net income of P536 million was P204 million or 27.5% lower year-on-year driven by lower gross profit and higher operating expenses.

​“Despite the drop in net earnings, which was mainly driven by lower sales in the first two months of the year, we are expecting a turnaround especially in the second half given the encouraging average daily sales right before and right after the long Easter holidays in April. Should this sales trend continue and especially if it improves further, we expect to reverse the decline in net earnings in this quarter later in the year,” according to Wilcon’s President, Ms. Lorraine Belo-Cincochan.

Ms. Belo-Cincochan added, “we are also encouraged by the performance of our below one year-old stores, which generated positive earnings as a whole, after quarterly negative results all of last year and despite a very soft market during the first two months of the year. We are hoping that this indicates a growing sales trend that will be sustained from here on.”

Other Results Highlights

Net sales totaled P8.408 billion, up 1.2% or P98 million year-on-year, driven mostly by sales from new stores as comparable sales declined 3.6% for the quarter. Two new stores were opened during the quarter, one depot in North Luzon and one smaller format Do-It-Wilcon (DIW) in Metro Manila, bringing the total number of branches to 102.

On a per format basis, the depots’ net sales of P8.116 billion accounted for 96.5% of total net sales during the quarter, up 1.8% or P142 million year-on-year, driven by the contribution of new stores with same store sales lower by 3.1%. The DIW stores accounted for 3.1% of total net sales, with P258 million. DIW net sales grew by 11.1% with a 7.4% same store sales growth. Project sales contributed the remaining 0.4%, declining by 67.2% as no new major projects were served during the year. Should project sales’ contribution stay below 1%, we shall be integrating project sales with our depot sales subsequently.

For the quarter, gross profit was lower by 1.7% or P56 million year-on-year to total P3.264 billion for the quarter in view of the margin rate contraction in both the non-exclusives and the exclusives and in-house brands categories with the continued popularity of our best deals offerings. The contribution of in-house and exclusive brands slid slightly to 52.2% from 52.6% but traced mainly to the decline in project sales.

Operating expenses including lease-related interest expense rose 7.8% or P192 million year-on-year to total P2.663 billion. The increase is mainly attributed to the increase in depreciation for new store buildings, lease-related interest expense covering new leases for new stores and salaries partly offset by the decrease in trucking and short-term rent.

Operating other income of P96 million is lower by 25.1% or P32 million year-on-year due mainly to collection timing of supplier support and other fees and rental income. Delivery fees and other customer charges meanwhile increased by 61.6% or P15 million year-on-year. Total other income consequently declined by 19.4% or P26 million to close at P110 million at the end of the quarter.