Wilcon Depot Q3 Profit Surges With Higher Number of Transactions

Whether you’re building a large house or renovating a condominium unit, giving the best materials from a trustworthy, trusted brand is critical.

Many homeowners undertook home repair projects as they spent less time outside. When it comes to your home building needs, Wilcon Depot Inc. is always on our go-to list of preferred suppliers.  It’s no surprise that many of us transact with it.

The Wilcon Depot, Inc. stock surged last week following a positive third-quarter results release.

According to data from the Philippine Stock Exchange (PSE), P25.38 million Wilcon shares worth P779.92 million were traded last week, making it the 15th most actively traded stock between Oct. 25 and 29.

On Friday, the home improvement and construction supplies retailer finished at P31.20 per share, 9.9 percent higher than its previous closing price of P28.4 per share on Oct. 22. Similarly, the stock has increased by 73.5 percent from the first trading day of 2021.

RELATED: 8 Useful Home Improvements to Add Value to Your Property

Wilcon Depot’s earnings surged at Q3 over the same time last year

Despite severe quarantine restrictions, Wilcon Depot Inc. reported increased profitability in the third quarter, mainly to tax savings that offset a drop in sales and an increase in operational expenses.

The home and construction supply company said its net income increased 16.7% year over year to P622 million in the July-September period, according to a report with the Philippine Stock Exchange (PSE) on Wednesday.

This increased the company’s nine-month net earnings to P1.87 billion, an increase of 111.1 percent over the same time last year when mobility restrictions impeded construction activity and hampered sales.

Wilcon Depot, Inc. registers a nine-month net income of P1.87 billion, up by 111.1% https://t.co/ts5NogSUJs

— Phil. Stock Exchange (@PhStockExchange) October 27, 2021

According to Wilcon, the increase in sales was mostly driven by uninterrupted operations of outlets in Luzon, which resulted in a higher number of transactions.

RELATED: 5 Modern House Improvements for the “New Normal”

However, Wilcon’s third-quarter numbers missed their second-quarter results by a small amount because of the mobility restrictions implemented as a result of the COVID-19 Delta variant.

Affected on the company’s third-quarter results are higher operational expenses, which increased 10.1 percent year over year to P1.7 billion as the firm launched two new depots as part of its store expansion plans.

Wilcon’s tax expense, on the other hand, fell 10.7% year over year to P204.7 million in the third quarter, thanks to a new law that reduces corporate income tax to help firms recover from the coronavirus outbreak.

Time for some home improvements!

With the loosening of restrictions as Covid-19 cases drop, Wilcon President and CEO Lorraine Belo-Cincochan hopes that their customers will be able to finish or start their home improvement projects in time for the Christmas holidays.

In total, Wilcon has 63 locations across the country, 56 of which are depots and seven of which are smaller “Home Essentials.”

This year, it plans to open nine depots and one Home Essentials outlet. Up until today, the company has opened seven depots and one Home Essentials.

Looking forward to more Wilcon product finds?

Photos are from Wilcon Depot Facebook Page

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CITATIONS:

• Tirona, A. O. (2021, November 1). Wilcon Depot’s upbeat Q3 earnings attract investors. BusinessWorld. Retrieved November 5, 2021, from https://www.bworldonline.com/wilcon-depots-upbeat-q3-earnings-attract-investors/

• Loyola, J. (2021, October 27). Wilcon Depot profits surge 111% to P1.9 B. Manila Bulletin. Retrieved November 5, 2021, from https://mb.com.ph/2021/10/27/wilcon-depot-profits-surge-111-to-p1-9-b/

• Royandoyan, R. (2021, October 27). Despite renewed lockdowns, Wilcon Depot posts higher earnings in Q3. Philippine Star. Retrieved November 5, 2021, from https://www.philstar.com/business/2021/10/27/2137034/despite-renewed-lockdowns-wilcon-depot-posts-higher-earnings-q3