Wilcon Depot Inc. is expecting modest single-digit sales growth this year amid continued sluggish demand due to a challenging economic environment.
Wilcon chief operating officer Rosemarie Ong said in a press briefing that the company is cautiously optimistic while pushing through with its expansion plans.
“We’re looking at a single-digit (growth). If we could get, positive 7 or even positive 8 percent in the second half, that should pull up the whole year,” Ong said.
Ong said the second half of the year is typically stronger compared to the first half.
To support its growth plans, Wilcon has set a capital expenditure budget of P3.2 billion for the year. As of the first quarter, the company had already spent P652 million.
The bulk of the budget, roughly P2.2 billion is allocated for new stores and warehouses.
Other allocations include P327 million for store and transportation equipment, P568 million for renovations and repairs, and P137 million for information technology infrastructure.
Wilcon said it plans to open six to eight new stores in 2025. However, company officials said they are no longer rushing expansions just to meet internal deadlines.
“We are now opting to stick to our budget,” said Mary Jean Alger, Wilcon vice president for investor relations.
“We’re more chill. Even if there’s a delay, we’re OK with it as long as we stay within budget,” she said.
The company recently opened its 103rd store and is preparing for its 104th. The slower pace of expansion reflects Wilcon’s more strategic approach after hitting its long-standing goal of reaching 100 stores.
The company earlier reported plans to open eight to 10 stores for this year.
Likewise, the company is implementing cost-cutting measures, particularly on fixed costs. It is also right-sizing some of its big stores and inventory to reduce expenses.
Net income for the first quarter of 2025 dropped 27.5 percent to P536 million, while net sales inched up 1.2 percent to P8.41 billion.
