Wilcon Depot confident on recovery

MANILA, Philippines — Wilcon Depot, the listed home and construction materials company, expects to recover from the disruption brought about by the coronavirus disease 2019 or COVID-19 pandemic.

During the company’s annual shareholders meeting late Monday afternoon, Wilcon founder and chairman emeritus William Belo said the company remains committed to its expansion program, particularly its goal of opening 100 stores in the country by 2025.

Lorraine Belo-Cincochan, president of Wilcon Depot, said that the company consistently posted strong performance with net income rising 15.8 percent last year as net sales grew 16.3 percent to P24.5 billion.

As a result, the company declared dividends of P0.18 per share, which was distributed on April 16 amid the enhanced community quarantine.

Belo-Cincochan said the company’s capex reached P2.6 billion in 2019. This went to six new depots, renovations and extensions of existing stores, new warehouse buildings and new software.

In the first half, Wilcon Depot’s net income declined by 64.6 percent to P352 million as the company bore the impact of the quarantine measures as a result of COVID-19.Net sales also declined 23.2 percent to P9 billion.

Belo-Cincochan, however, said the company has seen a steady increase in sales since the stores reopened on May 16.

She said Wilcon’s first half results were impacted by the closure of its Luzon stores for two months, with the biggest impact felt in the second quarter.