Wilcon Depot net income falls 3.24% on higher costs

LISTED construction supplies retailer Wilcon Depot, Inc. said its net income fell by 3.24% to P2.45 billion in 2025 from P2.53 billion a year earlier, as higher operating expenses and lower other income offset sales growth.

Net sales rose 3.7%, or P1.27 billion, to P35.44 billion, the company said in a disclosure to the stock exchange on Monday.

The company said full-year growth was driven mainly by store expansions, while comparable sales were flat at negative 0.3%.

Depot net sales, which accounted for 96.3% of total net sales, reached P34.136 billion, up 4% from 2024.

Do-It-Wilcon (DIW) stores contributed P1.123 billion, or 3.2% of total net sales, growing 12.8% mainly on the back of 6.8% same-store sales growth (SSSG) and the addition of a new outlet. Project sales declined 46.8% to P185 million.

“We are happy to announce that we were able to maintain positive same store sales growth in the fourth quarter, which resulted in a second half net income increase of 26%,” Wilcon Depot President and Chief Executive Officer Lorraine Belo-Cincochan said.

“We recalibrated some functional strategies, such as in-store organizational structure and processes, product marketing plans, store layouts, among others, which were aimed at reversing performance downturns,” she added.

In 2025, the company opened six new depots, closed two smaller-format DIW stores, and reopened one depot that had burned down in 2024, bringing the total number of operating stores to 104 by yearend.

Gross profit rose 2.5% to P13.68 billion, as higher-margin in-house and exclusive brands accounted for 52.4% of net sales, offsetting weaker margins from in-house and non-exclusive lines.

Operating expenses, which include lease-related interest, increased by 3.7% to P10.854 billion in 2025, driven mainly by higher depreciation and amortization, manpower costs, and repairs and maintenance. These were partially offset by lower trucking, supplies, taxes, and licenses.

Net other income declined by 12.3% to P424 million due to weaker supplier support and fees, although this was partly cushioned by lower calamity losses net of insurance claims and higher delivery fees.

For 2026, Wilcon Depot said it plans to accelerate its nationwide expansion with eight new stores, three of which have already opened early this year.

At the local bourse on Monday, shares in Wilcon Depot fell by 2.44% to close at P6 apiece. — Alexandria Grace C. Magno