MANILA, Philippines — Higher expenses pulled down the 2023 profit of Wilcon Depot Inc., by 9.5 percent to P3.5 billion, even as the listed home improvement retailer maintained expansion plans in the postpandemic era.
This happened despite Wilcon’s sales growing by 3.1 percent to P1.03 billion, the Belo-led company said in a stock exchange disclosure on Friday.
“There was an apparent slowdown in home improvement spending not only [locally] but globally as well,” said Lorraine Belo-Cincochan, Wilcon Depot president and CEO.
“Despite this slowdown, we continue to pursue our 100-store goal by 2024, a year earlier than initially planned,” Cincochan added. “We believe that we have to be in the best position to serve our market once home improvement spending rekindles.”
10 to go
By end-2023, the company had 90 stores across the country after opening nine new branches last year.
READ: Wilcon Depot marks year’s end with 90th store opening
Operating expenses for the year jumped by 13.5 percent to P8.94 billion on the back of expansion-related costs, particularly depreciation and amortization, Wilcon Depot said.
Lease-related interest expense also jumped by 17.7 percent to P641 million due to added leases for new stores.
Depots comprised 96.3 percent of the company’s total net sales at P33.23 billion, up by 2.2 percent from 2022, as Wilcon opened seven new such facilities.
The Home Essentials format, meanwhile, contributed 2.1 percent with P741 million, representing a 15.7-percent increase. INQ
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