Wilcon Depot to open 8 more stores in 2020 with P2.9-B capex

Home improvement and construction supply retailer Wilcon Depot Inc. will open at least eight new outlets in 2020, bringing its total to at least 65 stores by the end of the year.

In a regulatory filing, Wilcon said it has earmarked P2.9 billion this year as capital expenditures to finance the construction of new stores, warehouses, and extensions to the renovation of existing stores.

"We are on track to finish 2020 with at least 65 stores as we are set to open between eight to nine depots this year," said president and CEO Lorraine Belo-Cincochan.

"For 2020, we have budgeted around P2.9 billion in capital expenditures to fund the construction of new stores, more renovations, and extensions, as we are upgrading some old branches to be at par with our new stores and others," she said.

Wilcon ended 2019 with net sales of P24.476 billion, 16.3% higher than the P21.041 billion recorded the previous year.

Net income likewise grew 15.8% to P2.125 billion from P1.835 billion.

"We are targeting to maintain a mid-teen topline and net income growth for 2020 as well as a steady five to six percent comparable sales growth," said Belo-Cincochan.

Depots comprised 95.9% of net sales in 2019, totaling P23.649 billion generated from 50 branches.

Meanwhile, sales from the smaller format Home Essential accounted for 2.7% or P658 million of net sales, registering a 6.2% growth.

Project sales accounted for 1.4% or P349 million, reflecting a growth of 28.6% or P78 million year-on-year.

"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," said Belo-Cincochan.

"These results certainly will encourage us more to continue in our strategic direction and give us assurance that we can deliver consistent growth in the coming years," she added. — BM, GMA News