Wilcon Depot (WLCON) Q4 2024 earnings summary

Executive summary

• Q4 2024 net sales reached PHP 8.5 billion, down 2% year-on-year, with net income after tax at PHP 411 million, a 45.8% decline year-on-year.

• Full-year 2024 net sales totaled PHP 34.2 billion, down 1.2% year-on-year, and net income was PHP 2.528 billion, down 27.4%.

• Comparable sales and transaction counts declined across all formats, with ticket size also falling.

• Ten new stores opened in 2024, reaching the 100th store milestone.

Financial highlights

• Q4 gross profit margin was 37.9%, EBITDA margin 10%, and EBIT margin 6.4%.

• Full-year gross profit margin was 39.1%, EBITDA margin 13.6%, and EBIT margin 9.9%.

• Operating expenses for the year rose 9.2% to PHP 10.464 billion, mainly due to higher taxes, licenses, trucking, and salaries.

• Net income margin for 2024 was 7.4%, down from 10.1% in 2023.

• Cash dividends of PHP 1.52 billion were distributed in 2024.

Outlook and guidance

• Management expects mid-single digit sales growth for 2025, with flat same-store sales growth as the best-case scenario.

• Margin pressure may persist due to continued price refreshes and market softness, but Q4 2024 margins are expected to be the lowest point.

• Eight new stores planned for 2025, with two already opened.

• Focus on optimizing product mix, enhancing in-house and exclusive brands, and improving customer experience both in-store and online.