Total sales dipped 0.4 percent to P17.1 billion, with comparable sales down nearly 5 percent, hurt by long holidays in April and May and lower average ticket sizes.
Key figures
• Gross profit fell 3.3 percent to P6.6 billion as margins slipped to 38.7 percent.
• Operating expenses rose 4.1 percent to P5.29 billion amid store expansion.
• Cost gains were partly offset by lower trucking and rent expenses.
Management’s view
“We are already seeing an upward trend in our sales and our SSSG is already in positive territory in June including same store sales growth,” said Wilcon president and CEO Lorraine Belo-Cincochan.
“It was mainly during the long holidays in April and May that foot traffic was affected, as expected… If sales growth rates continue to trend upward and we are able to control increases in some expense items, we are expecting to reverse the net income decline in the first half,” she added.
Branch expansion
The company opened three new branches and reopened its Baliwag store, bringing its network to 103. The smaller Do-It-Wilcon format saw 10.8 percent sales growth to P540 million, partly due to new store contributions.
Wilcon is working to improve profitability at older stores, including layout and product refreshes and tighter control over selling areas to manage costs.
—Edited by Miguel R. Camus
