Wilcon Depot (WLCON) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 reached PHP 9.17 billion, up 9.1% year-over-year, driven by new store openings and strong category performance.

• Net income after tax was PHP 563 million, a 4.9% increase compared to Q1 2025, supported by revenue growth despite margin contraction and higher operating expenses.

• Three new depots opened in Luzon, specifically Carmona, Salawag, and Angeles City, bringing the total to 107 branches.

• Gross profit margin contracted to 37.0%, while EBITDA margin was 12.5% and EBIT margin 7.9%.

Financial highlights

• Depot-format stores contributed 96.3% of net sales, growing 8.8% year-over-year, with 4.6% same-store sales growth and 4.2% from new stores.

• Do-It-Wilcon and Projects formats contributed 3.1% and 0.6% of sales, respectively, with project sales up 62.9% to PHP 56 million.

• Gross profit was PHP 3.39 billion, with operating expenses rising 7.8% to PHP 2.77 billion, mainly due to expansion and higher depreciation, utilities, and services.

• Total assets as of March 31, 2026, were PHP 41 billion, up 0.8% from December 31, 2025; total liabilities increased 8.9% to PHP 17.1 billion, mainly from additional lease liabilities.

• Total equity was PHP 23.7 billion, down 4.3% due to dividend declaration.

Outlook and guidance

• April and May sales trends remain strong, supported by construction season and deferred price adjustments.

• Management expects double-digit sales growth for the year if current trends persist and external shocks are limited.

• Gross profit margin is expected to stabilize at 37%-38% if exclusive brand contribution improves.

• Store network expansion will continue, with 6-8 new stores planned annually and CapEx of PHP 2-2.59 billion per year.

• Focus on disciplined store network growth, optimization of existing stores, and continued investment in customer experience and product portfolio.