Wilcon Depot (WLCON) investor relations material

Executive summary

• 9M net sales rose 7.9% to P28,429M, while net income fell 6.1% to P1,752M as expenses grew faster than sales and gross margin narrowed.

• Q3 net sales were P9,228M versus P9,452M; net income fell to P548M from P703M, and EPS was P0.13 versus P0.17.

• Q3 comparable sales fell 1.9%; margin compression and higher operating expenses pressured profitability.

Financial highlights

• 9M gross profit rose 5.1% to P10,594M, while gross margin declined 100 bps to 37.3%; cost of sales rose to P17,836M.

• 9M operating expenses rose 8.3% to P8,017M; income before tax declined to P2,331M from P2,478M.

• Q3 gross profit was P3,517M, up 1.5%; operating income fell 22.9% to P721M and adjusted EBITDA declined 13.6% to P1,150M.

• Rent-adjusted 9M EBIT fell 7.2% to P2,282M and adjusted EBITDA fell 1.4% to P3,554M.

Outlook and guidance

• Expansion decisions consider demand economics, payback thresholds and operating complexity; established locations prioritize optimization, resilience and cash generation.

• Product and margin decisions focus on portfolio returns, sustainable ROIC and long-term economics, balancing assortment, pricing, cost-to-serve, capital and complexity.

• Customer touchpoint changes target scalable service, fulfillment efficiency and operating leverage; brand investment aims to support demand quality and margin resilience.

• Construction in progress for new stores in strategic locations was expected to be completed in 2026; commitments were P2,488.9M at September 30.