Wilcon Depot (WLCON) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 reached PHP 8.7 billion, down 1.9% year-on-year, and for H1 2025 totaled PHP 17.1 billion, a 0.4% decrease, mainly due to long holidays.

• Net income for Q2 2025 was PHP 626 million, down 18.7% year-on-year; H1 2025 net income was PHP 1.16 billion, down 23%.

• Gross profit margin for Q2 2025 was 38.5%; for H1 2025, 38.7%, both lower year-on-year due to pricing strategy and product mix.

• Operating expenses rose 3.9% in H1 2025, mainly due to expansion, depreciation, and utilities.

• Three new stores opened in H1 2025, bringing the total to 103 as of June 30, 2025.

Financial highlights

• Q2 2025 comparable sales declined 6.1% year-on-year; H1 2025 comparable sales declined 4.9%.

• EBITDA margin for Q2 2025 was 13.9%, and for H1 2025 was 13.3%.

• Net income margin for Q2 2025 was 7.2%, and for H1 2025 was 6.8%.

• Total assets as of June 30, 2025 were PHP 41 billion, up 4.8% from end-2024; total liabilities PHP 17.3 billion, up 13.7%.

• Company remains bank debt-free; liabilities are mainly trade payables and lease liabilities.

Outlook and guidance

• Same-store sales growth (SSSG) guidance for full year remains at low single digit, with potential upside if positive trends continue.

• Management expects second half sales to improve, supported by positive SSSG in June and July and seasonal trends.

• Store network expansion remains a key strategy, with flexibility in timing based on market conditions.

• Plans to optimize product mix, enhance in-house and exclusive brands, and improve customer experience both online and offline.

• Capital expenditures for H1 2025 were PHP 1.1 billion, focused on new stores and warehouses.