NETWORK EXPANSION This retailer in Pila, Laguna opened in 2021. Wilcon Depot is in the midst of the newest spherical of department additions.
MANILA Philippines — Sluggish demand within the dwelling enchancment sector pulled down the 2024 earnings of Wilcon Depot Inc.
This occurred as customers are opting to purchase cheaper merchandise.
The Belo family-led agency disclosed to the inventory change on Friday that its backside line ebbed by 27.4 p.c to P2.53 billion.
Web gross sales additionally subsided by 1.2 p.c to P34.17 billion.
Depot shops contributed P32.83 billion to the group’s whole gross sales. In the meantime the smaller Do It Wilcon (DIW) branches added P996 million.
Venture gross sales accounted for P347 million.
Retailer openings and lease-related prices resulted in a 9.2-percent rise in working bills, which reached P10.46 billion.
Wilcon ended the yr with 100 shops, comprising 89 depots and 11 DIW branches.
‘Market remained tender’
“The yr 2024 continued to be a difficult yr for dwelling enchancment because the market remained tender,” Wilcon president and CEO Lorraine Belo-Cincochan mentioned in an announcement.
“Whereas we’ve seen enhancements in buyer and transaction counts within the fourth quarter, ticket and basket sizes shrank as clients proceed to down commerce,” Cincochan mentioned.
This yr, Wilcon plans to open eight new shops, building for half of which started in 2024.
READ: Wilcon readies P2.2-B capex for growth
She mentioned a lot of the new shops—a mixture of small and medium codecs—will likely be opened in Luzon. Nonetheless, one will rise in Cebu throughout the second quarter.
Cincochan famous the excessive value of placing up new shops. She mentioned they needed to be “in the very best place to serve our clients when demand bounces again.”
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Within the fourth quarter of final yr alone, Wilcon’s internet revenue fell by 45.8 p.c to P411 million. This was attributable to decrease gross sales.
Web gross sales throughout these three months ended at P8.5 billion, down 2 p.c.
