Since it’s the end of another quarter this year, Wilcon Depot Inc. disclosed that it generated a 15.5% increase in net profit. The home improvement retailer told that its net profit reached P549 million during the period of July to September. The year-to-date figure is at P1.54 billion because of this quarter’s contribution and it is up by 11% if we take into account the past nine months. In a statement, Wilcon said that the increase was driven mainly by the sustained margin expansion due to the improving sales mix in favor of higher-margin products and the growth in sales. The company aims on bringing higher-margin products to its shops.
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When it comes to net sales, Wilcon generated P18.04 billion or 17.4% higher during the nine-month period if we compare it to last year’s figure during the same period. The depot-format stores reached P17.28 billion in sales, which is 18% higher than last year’s nine-month period. This is accounted for as 95.8% of the total revenues of the store. The company recently opened three new depot stores from July to September. The total depot stores are now 48 and the overall stores are 55.
Wilcon’s smaller format stores, Home Essential Stores, raised P492 million in revenues during the nine-month period. This is up by 6.4% compared to last year. The company also got sales from large property developers and the hospitality industry, which reached P260 million or 21% higher for the three quarters. The categories mentioned above indeed contributed to the overall net profit increase of Wilcon. This information is essential to all investors out there. Whether the company is performing well or not, it’s your decisions to continuously invest. Just make sure you are buying something valuable.
With the increasing revenues comes with rising operating expenses. The operating expenses of Wilcon during the nine-month period rose by 24.3% to P3.91 billion because the firm is continuously investing in new stores. Interest expenses were at P208 million, 8,764% higher than last year due to the soaring depreciation and amortization and significant increase in utilities, manpower expenses, taxes, licenses, and trucking. Despite the increase in operating expenses, the firm is pleased with the third-quarter performance as its gross profit margin continues to improve and the sales rate continues to grow.