Wilcon Depot (WLCON) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 reached PHP 9.2 billion, up 8.6% year-on-year, with net income at PHP 703 million, a 15.8% increase from Q3 2024.

• For the nine months ended September 30, 2025, net sales totaled PHP 26.3 billion, up 2.6% year-on-year, while net income after tax was PHP 1.87 billion, down 11.9% year-on-year due to lower gross margin and higher operating expenses from expansion.

• Store network expanded to 103 locations nationwide as of September 30, 2025, with several new store openings and one closure.

Financial highlights

• Q3 2025 gross profit margin was 37.5%, with EBITDA margin at 14.4% and EBIT margin at 10.2%.

• For the nine months, gross profit margin was 38.3%, EBITDA margin 13.7%, and net profit margin 7.1%.

• Operating expenses for nine months rose 3.9% year-on-year to PHP 7.94 billion, mainly due to expansion.

• Total assets as of September 30, 2025, were PHP 41 billion, up 4.4% from end-2024.

• Interest expense rose 7.7% to PHP 538 million, reflecting additional leases for new stores.

Outlook and guidance

• Expecting positive, low single-digit same-store sales growth for the full year, barring further calamities.

• Gross profit margin expected to remain lower but stabilize, with 37.5% seen as a sustainable level.

• Store network expansion to continue at a modest pace, with additional openings planned for next year.

• Growth strategies focus on optimizing product mix, enhancing customer experience, and increasing brand awareness.

• Emphasis on profitability of in-house and exclusive brands, and continued investment in physical and digital retail enhancements.