LISTED home improvement and construction supply retailer Wilcon Depot, Inc. has set a P3.2-billion capital expenditure (capex) budget for 2025, higher than last year’s, as it aims to drive a financial rebound in the second half.
“Our (capex) budget for the year is P3.2 billion. In the first quarter, we already spent P652 million,” Wilcon Depot Vice-President for Investor Relations Mary Jean G. Alger said in a virtual briefing on Monday.
Of the total, P2.2 billion will be allocated for the construction of new stores and warehouses, P568 million for renovations and repairs, P327 million for store and transportation equipment, and P137 million for information technology infrastructure.
Wilcon’s 2025 capex is higher than the P2.2 billion spent last year.
Ms. Alger said the company expects earnings to remain flat this year, with a recovery seen in the second half.
“We’re just looking at very minimal growth. We’re looking, actually for this year, just really flattish… We’re looking at the recovery of the first-half decline in the second half,” she said.
In the first quarter, Wilcon’s net income dropped by 27.5% to P536 million. Gross profit fell by 1.7% to P3.26 billion due to a lower margin rate across non-exclusive, exclusive, and in-house brand categories.
Wilcon Chief Operating Officer Rosemarie B. Ong said the company expects revenue to grow by a “high single-digit” rate, noting a conservative outlook for the year.
“We’re still looking at growth, but it’s going to be conservative,” she said.
Ms. Ong added that the company is reviewing the size of its stores to improve network efficiency and optimize spending.
She said Wilcon is focusing on expanding in regional markets amid softening demand in Metro Manila.
“The impact of the slowness of the market was really felt in Metro Manila. However, the Cavite-Laguna area, wherein we are really focused on expanding our footprint, is doing quite well compared to Metro Manila. We’re trying to right-size the store based on the capacity of the market, how large the market is, or how many stores we have in that area,” she said.
“We’re seeing growth in the emerging areas like South Luzon, some parts of North Luzon, and some parts of Visayas and Mindanao,” she added.
On store expansion, Ms. Alger said Wilcon is targeting eight new store openings this year. Last month, it opened a branch in Cordova, Cebu — its 103rd store nationwide.
Shares of Wilcon fell by 1.04% or eight centavos to P7.60 apiece on Monday. — Revin Mikhael D. Ochave