Wilcon Depot spending P5 B for more branches

MANILA, Philippines - Wilcon Depot Inc. has allotted P5 billion for the expansion of its store network over the next five years.

In an interview Monday, Wilcon chairman and founder William Belo said the company would add 27 more branches, eight of which are slated for opening this year. The new branches are expected to nearly double the firm’s portfolio.

“This year, we want to do eight. We just opened one last January and there will be seven more for the year,” Belo said.

At present, the company has a total of 38 branches, spanning around 260,000 to 270,000 square meters in size.

A typical Wilcon Depot branch measures around 8,000-9,000 square meters in size. The 27 new branches would translate to an additional 216,000 to 243,000 sqm.

On average, the company opens three to four branches a year.

Belo, however, noted that the firm wants to accelerate its growth, driven by a bullish economy and its upcoming initial public offering which is estimated to generate as much as P7.9 billion.

The shares are expected to be listed on the Philippine Stock Exchange by March 23.

Around 70 to 80 percent of the IPO proceeds will be used for the firm’s five-year expansion plan, while the remaining fund will be used for operational costs and payment of existing loans.

Belo expects its net sales to rise 15 percent this year to P18 bilion.

“We are expecting a big growth because of the branches we will put up,” Belo said.

For the succeeding years, the company is targeting a 13 to 15 percent growth annually, he said.

This year, Wilcon is spending about P2 billion to open branches in Bacolod, Cagayan De Oro, Iloilo, Silang and General Trias in Cavite and Cabanatuan.