Wilcon reports Q3 net income of P908-M (down 17.7% y/y)
Wilcon [WLCON 19.80, up 0.8%; 35% avgVol] [link] posted a Q3 net income of P908 million, which is 17.7% lower y/y from its Q3/22 net income of P1.1 billion. WLCON’s 9M/23 net income is P2.7 billion, which is 8% lower for the same period last year. WLCON attributes the net income downtick to higher operating expenses that could not be overcome by the company’s increases in net sales (+4.9% y/y) and gross profit (+6.6% y/y). WLCON reported benefitting considerably from new stores that were added to its network (which now stands at 87 branches), but said that it suffered a 2.1% decline in same-store sales. On a format basis, the depot format stores generated 96.5% of net sales and grew 4.1% in 9M/23 (-2.8% in same-store sales), while the smaller “Home Essentials” format stores generated 2.1% of net sales and grew 19.2% in 9M/23 (-2.2% in same-store sales). The 17% increase in operating expenses was mainly due to costs incurred as part of WLCON’s aggressive expansion program.
