RETAIL giant Wilcon Depot Inc. ended 2019 with a 15.8-percent growth in net income to P2.13 billion on the back of a double-digit surge in net sales.
In a disclosure on Wednesday, Wilcon said that last year’s bottom-line figures were better than the P1.84 billion registered in 2018 as the retailer beefed up its store network.
Net sales for the period climbed by 16.3 percent to P24.48 billion from P21.04 billion year-on-year. Bulk or 67.9 percent of the total increase was attributed by Wilcon to the opening of six new depots, bringing the total to 57 in 2019.
Depot sales, which comprised nearly 96 percent of total net sales, spiked 16.5 percent to P23.47 billion last year.
Around 3 percent or P658 million of the sales was occupied by Wilcon’s smaller format store Home Essentials, which currently has seven branches.
The remaining 1 percent or P3.49 million was made up of project sales.
“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. 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,” Wilcon President and Chief Executive Officer Lorraine Belo-Cincochan said.
Operating expenses last year surged 22.1 percent to P5.40 billion due to changes in accounting policies and standards, expansion and salary adjustment.
Wilcon set capital expenditure at P2.9 billion this year, higher than P2.65 billion in 2019.
This will be allocated to funding the construction of new stores, renovations and extensions, among others.
It is set to open eight to nine new depots this year.
“We are targeting to maintain a mid-teen topline and net income growth for 2020 as well as a steady 5 to 6 percent comparable sales growth,” Belo-Cincochan added.
Wilcon shares dipped 16 centavos or 0.86 percent to finish at P18.50 each on Wednesday.