Wilcon Depot spending P2.8 B for expansion

MANILA, Philippines — Wilcon Depot Inc., the listed home and office supplies company, is pouring in P2.8 billion in capital expenditures this year for further expansion as it opens new depots and distribution centers. 

Wilcon Depot chairman emeritus William Belo said the company plans to open eight to nine new depots this year as part of its expansion program. 

Overall, the target is to hit 65 stores by the end of 2020 and a total of 100 stores by 2025, Belo said after the company’s annual stockholders meeting yesterday.

“We will put up another 35 stores within the next five years to hit 100 by 2025,” Belo said. 

The company expects topline growth to hit the “high teens.”

Last year, Wilcon posted a net income of P1.83 billion, up 32.5 percent year on year on the back of an 18.6 percent increase in revenue to P21.04 billion.

In the first quarter alone, the company reported a net income of P484 million, 18.2 percent higher than the previous year due to strong net sales growth and healthy gross profit margin expansion. 

Last year, Wilcon opened nine depots.

“Some of the new stores are in new locations such as Naga, Tacloban and Puerto Princesa. Four branches were opened in the Calabarzon region during the year. Wilcon closed the year with 51 stores,” said Wilcon Depot president and chief executive officer Lorraine Belo-Cincochan.

Moving forward, Belo-Cincochan said the company would continue to look for probable areas for expansion.

“We remain bullish on the growth potential of the economy in general and the consequent expansion of our target market,” Belo-Cincochan said.

For this year, the eight to nine stores will be located outside Metro Manila. Two have already opened. 

Belo-Cincochan said Wilcon Depot is completing plans for the next phase of its roadmap.