Wilcon Depot (WLCON) Q3 2024 earnings summary

Executive summary

• Net sales for 3Q 2024 reached P8.5B, down 3.3% year-over-year, with net income after tax (NIAT) at P599M, a 34% decline year-over-year.

• For the nine months ended September 2024, net sales totaled P25.7B, down 1.0% year-over-year, and NIAT was P2.12B, down 22.3% year-over-year.

• Store network expanded to 98 stores nationwide, with eight new stores opened in the first three quarters of 2024.

Financial highlights

• Gross profit margin for 3Q 2024 increased to 38.8%, while EBITDA margin was 13.6% and EBIT margin 10%.

• For 9M 2024, gross profit margin was 39.5%, EBITDA margin 14.8%, and EBIT margin 10.9%.

• Operating expenses rose 9.5% in 3Q 2024 and 8.9% for 9M 2024, mainly due to expansion-related costs.

• EBITDA fell 17.1% to P3,798 million, and EBIT dropped 22.6% to P2,799 million for 9M 2024.

• Interest expense increased by 5.5% to P499 million due to additional leases for new stores.

Outlook and guidance

• Management continues to focus on store network expansion, in-house and exclusive brand development, and enhancing customer experience both in-store and online.

• Brand awareness and visibility initiatives are being strengthened through digital platforms and industry engagement.

• Management expects to recover part of the fire loss through insurance claims later in the year.