Wilcon Depot (WLCON) investor relations material

Executive summary

• Net sales for 2Q 2026 reached P9.8B, up 12.7% year-over-year, with net income at P641M, a 2.4% increase from 2Q 2025.

• For the first half of 2026, net sales totaled P18.98B, up 10.9% year-over-year, and net income after tax (NIAT) was P1,204M, a 3.5% increase.

• Five new stores opened in 1H 2026, bringing the total to 109 as of June 30, 2026.

Financial highlights

• Gross profit margin for 2Q 2026 was 37.5%, down from 38.5% in 2Q 2025; EBITDA margin was 12.8%.

• For 1H 2026, gross profit margin was 37.3%, EBITDA margin 12.7%, and EBIT margin 8.2%.

• Operating expenses rose 9.2% year-over-year in 2Q 2026 and 8.5% to P5,345M in 1H 2026, mainly from expansion and higher depreciation.

• Net income margin was 6.3%, down from 6.8% in the prior year.

• Interest expense increased 1.4% to P363M due to additional leases.

Outlook and guidance

• Strategy focuses on disciplined store network expansion, portfolio-led product and margin management, and strengthening brand equity for long-term demand and pricing power.

• Store expansion is governed by demand, payback thresholds, and manageable complexity.

• Management continues to focus on expansion, with capital expenditures of P1,225M for new stores and renovations.

• The company maintains strong liquidity and access to debt markets, remaining bank debt-free.