Wilcon Depot Q3 profit drops on higher costs, weaker demand

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Wilcon Depot Q3 profit drop

Highlights

Wilcon Depot Q3 net income falls 22.1% to P548.03 million, as higher expenses and weak same-store sales offset 2% revenue growth.
January–September net income drops 6.1% to P1.75 billion, but net sales rise 7.9% to P28.43 billion on store expansion and 3.6% same-store sales growth.
Shares close down 2.67% at P5.10 as persistent macroeconomic and weather-related challenges prompt softer demand and higher costs, despite positive year-to-date momentum.

Third-quarter earnings pressure and sales trends

As reported by BusinessWorld Online, Wilcon Depot says net income for the third quarter falls 22.1% to P548.03 million from P703.37 million a year earlier, as higher expenses and weaker same-store sales offset modest revenue growth.

For the three months ended September, gross revenues rise 2% to P9.55 billion from P9.36 billion, while gross expenses increase 4.5% to P8.61 billion from P8.24 billion. Net sales climb 2.4% to P9.45 billion, helped by newly opened stores, but same-store sales decline 1.9%.

President and Chief Executive Officer Lorraine Belo-Cincochan says macroeconomic and weather-related headwinds halt the company’s earnings growth trajectory in the quarter. She says persistent downpours in August keep customers from starting home improvement projects, leading to lower foot traffic and a steep year-on-year net sales drop during the month.

Full-year outlook and market reaction

For the first nine months of 2026, Wilcon’s net income declines 6.1% to P1.75 billion from P1.87 billion in the same period last year. Gross revenues for January to September increase 7.7% to P28.72 billion from P26.66 billion, while gross expenses rise 9.3% to P25.85 billion from P23.66 billion.

Net sales for the nine-month period grow 7.9% to P28.43 billion, supported by store expansion and a 3.6% increase in same-store sales. Wilcon opens seven stores during the period, bringing its nationwide network to 111 stores as of end-September.

The company says it expected a sharp turnaround in September, but prevailing macroeconomic challenges keep consumers focused on repairs and basic home improvement needs. Even so, it says year-to-date same-store sales growth remains positive, keeping the business on track to deliver positive same-store sales growth for full-year 2026. Shares in Wilcon close down 2.67% at P5.10 on Monday at the local bourse.

In our earlier report on the Philippine Stock Exchange’s rebound amid a record-low peso, we noted how bargain hunting lifted the benchmark index after recent losses even as currency weakness kept sentiment cautious. We also highlighted improved foreign flows and investors’ focus on macroeconomic signals, including interest-rate expectations and broader risk appetite.

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