Wilcon Depot Inc. is raising its 2022 capital expenditures by 83 percent to P3.95 billion from P2.16 billion last year to roll out more stores and renovate existing outlets.
Wilcon said in a recent investors briefing it would open eight stores this year to boost the network to 81 by the end of the year.
The company said it was on track to achieving its target of 100 branches by the end of 2025.
The new stores are located in Gapan, Nueva Ecija; Lemery, Batangas; Bantay, Ilocos Sur; Calapan, Oriental Mindoro; Abucay, Bataan; Bauang, La Union; and San Jose, Nueva Ecija.
It said of the P3.95-billion capital expenditures, 76 percent or P3.53 billion would be allotted for new store expansion and renovation of existing outlets.
The company also shifted to renewable energy for its power consumption as it plans to spend P236 million for solar panel project. The remaining P176 million will be set aside for IT infrastructure projects.
Wilcon said it also plans to increase its margins through in-house and exclusive brand expansion.
Wilcon recorded a 40.7 percent year-on-year growth in net income to P851 million in the first quarter from P604 million in the same period last year on the back of double-digit growth in sales.
First-quarter net sales rose 14.6 percent to P7.652 billion, as same-store sales rose 8.6 percent.
“We are pleased with our strong start for the year as our customers trooped back to our stores when the Covid-19 Omicron variant surge receded in February. Our comparable sales declined in January at the height of the surge, but we turned around the downward trend to end the quarter with an 8.6 percent growth and a 14.6-percent total net sales growth,” Wilcon chief executive Lorraine Belo-Cincochan said.
The depot format stores’ sales, accounting for 97.5 percent of total net sales, grew by 15 percent to P7.46 billion.
The contribution of the smaller format to total net sales declined to 1.8 percent and totaled P138 million.
Gross profit grew 21.1 percent to P2.93 billion on higher sales and gross profit margin expansion by 200 basis points to 38.3 percent. Operating expenses increased 13.8 percent to P1.766 billion on expansion-related expenses.