Wilcon Depot, Inc. · PSE:WLCON
Wilcon Depot — 9M 2023 Earnings Presentation
26 slides from Wilcon Depot's earnings presentation, Oct 27, 2023
Slide 1: 9M 2023 Earnings Briefing
9M 2023 Earnings Briefing October 27, 2023 | 4:00 PM
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Disclaimer The above contains statements about future events and expectations that constitute “forward- looking statements.” These forward-looking statements include words or phrases such as the Company or its management “believes”, “expects”, “anticipates”, “intends”, “ma
Slide 3: Third Quarter 2023 Results
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Slide 4: 3Q 2023 Results Highlights
3Q 2023 RESULTS HIGHLIGHTS Financial Highlights Comparable Sales Summary 3rd QUARTER 2023 -5.7% SSSG STA. MARIA, BULACAN ✓ Php 8.791B Net Sales -7.5% Transaction Count ✓ 0.1% y-o-y Net Sales growth 2.0% Ticket Size ✓ Php 908M NIAT Total Sales Mix ✓ 39.6% GPM 51.2% In-house & exclusive contribution ✓
Slide 5: Total Net Sales Breakdown – 3Q 2023
Total Net Sales Breakdown – 3Q 2023 Home 3Q2023 Projects, Home 3Q2022 Projects, Essentials, 208, 2.4% Essentials, 92, 1.0% Php Millions 175, 2.0% 199, 2.2% 0.1% Depots, Depots, 8,385, 95.4% 8,514, 97.0% Sales Growth per Store Format Product Category Performance 3Q2023 VS 3Q2022 3Q2023 VS 3Q2022 126.
Slide 6: Comparable Sales Summary
Comparable Sales Summary Quarterly Trend Comparable Sales per Format 3Q2023 vs 3Q2022 197.5% 126.9% 22.6% 25.5% -7.1% -4.4% DEPOT Home Essentials Projects 3Q2023 3Q2022 6
Slide 7: Third Quarter 2023
THIRD QUARTER 2023 (In Php MM) 3Q2023 % Sales 3Q2022 % Sales % Growth Net Sales 8,791 100.0 8,780 100.0 0.1 Cost of Sales -5,314 -60.4 -5,322 -60.6 -0.1 GPM rate increased to 39.6% Gross Income 3,477 39.6 3,459 39.4 0.5 Operating Expenses -2,195 -25.0 -1,985 -22.6 10.6 Lease-related expense Interest
Slide 8: Nine Months 2023 Results
NINE MONTHS 2023 RESULTS _ e
Slide 9: 9M 2023 Results Highlights
9M 2023 RESULTS HIGHLIGHTS Financial Highlights Comparable Sales Summary Php 2.006B -2.1% SSSG ✓ Php 25.943B Net Sales CAPEX -5.4% Transaction Count ✓ 4.9% y-o-y Net Sales growth 3.5% Ticket Size Opened 6 New Stores ✓ Php 2,726M NIAT Total Sales Mix NINE MONTHS 2023 ✓ 39.5% GPM 50.9% • Guiguinto, Bu
Slide 10: Total Net Sales Breakdown – 9M 2023
Total Net Sales Breakdown – 9M 2023 Home 9M2022 Projects, Home 9M2023 Projects, Essentials, 210, 0.8% Essentials, 368, 1.4% 461, 1.9% Php Millions 549, 2.1% 4.9% Depots, Depots, 25,025, 96.5% 24,052, 97.3% Sales Growth per Store Format Product Category Performance 9M2023 VS 9M2022 9M2023 VS 9M2022 B
Slide 11: Comparable Sales Summary
Comparable Sales Summary Trend Comparable Sales per Format 9M2023 vs 9M2022 75.5% 72.0% 15.4% 12.1% -2.8% -2.2% DEPOT Home Projects Essentials 9M2023 9M2022 11
Slide 12: Nine Months 2023
NINE MONTHS 2023 (In Php MM) 9M2023 % Sales 9M2022 % Sales % Growth Net Sales 25,943 100.0 24,723 100.0 4.9 Cost of Sales -15,695 -60.5 -15,105 -61.1 3.9 GPM rate increased to 39.5% Gross Income 10,248 39.5 9,617 38.9 6.6 Operating Expenses -6,562 -25.3 -5,588 -22.6 17.4 Lease-related expense Intere
Slide 13: Balance Sheet
Balance Sheet Unaudited Sep 30, 2023 Audited Dec 31, 2022 Current Assets 18,339 17,385 Noncurrent Assets 19,863 18,258 Total Assets 38,202 35,643 Current Liabilities 8,405 7,659 Noncurrent Liabilities 8,045 7,441 Total Liabilities 16,450 15,100 Capital Stock 4,100 4,100 Additional Paid-in Capital 5,
Slide 14: 9M 2023 CAPEX Investment
9M 2023 CAPEX Investment 9M 2023 Actual Capex Breakdown Spent New Stores 1,452 New Warehouses 182 Renovation and Repairs 101 Solar Panel Project, Store & 234 Transportation Equipment IT Infrastructure and Projects 37 Total CAPEX (in millions Php) 2,006 14
Slide 15: Sales Margin Trend
Sales Margin Trend Php Millions 33,571 27,513 25,943 24,476 22,629 21,041 17,748 15,965 14,450 13,596 11,862 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 15
Slide 16: Improving Margins
Improving Margins 39.1 39.5 GPM 37.3 33.4 34.4 31.4 29.7 EBITDAM 18.6 17.7 15.8 13.1 11.9 11.9 15.2 EBITM 10.4 13.9 11.2 11.4 8.8 12.3 9.8 11.5 10.5 NPM 8.7 8.7 9.3 7.8 6.4 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 9M2023 Note: ROU depreciation and interest expense charged on lease liability were co
Slide 17: Returning Value to Shareholders
Returning Value to Shareholders Cash Dividend per share over time: (Php/share) 17
Slide 18: Growth Strategy
Store network expansion Continue to build and develop in- house products and carry exclusive brands Physical and online store layout, features and customer experience enhancements Further strengthen and increase brand awareness and visibility 18
Slide 19: 2023 Planned New Branches
2023 Planned New Branches 2023 Beg. Balance 83 Guiguinto, Bulacan 64 Jan, 2023 Rosario, Batangas 7 Mar, 2023 1st Half Uptown, CDO Apr, 2023 San Fernando 2, Pampanga 10 Jun, 2023 Sta. Maria, Bulacan Jul, 2023 Iligan City, Lanao del Norte 1 Sept, 2023 2nd Half Naic, Cavite 9 Oct, 2023 Tuy, Batangas De
Slide 20: Wilcon Stores
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Slide 21: FY2023 CAPEX Budget
FY2023 CAPEX Budget FY2023 9M2023 Remaining Capex Breakdown Budget Actual Spent Balance New Stores 2,205 1,452 753 New Warehouses 405 182 223 Renovation and Repairs 672 101 571 Solar Panel Project, Store & 350 234 116 Transportation Equipment IT Infrastructure and Projects 214 37 177 Total CAPEX (in
Slide 22: Continue to Expand Margins Through In-house & Exclusive Brands
Continue to Expand Margins Thru Increasing the Profitability of In-house & Exclusive Brands • Improve supply chain management • Enhance marketing efforts ✓ Enhance the Company’s ability to provide its Optimize product lines/ customers with value for money products product offerings ✓ Rationalize pro
Slide 23: Physical and Online Store Layout and Customer Experience Enhancements
Physical and online store layout, features and customer experience enhancements • Constant innovations in store layout, features and customer experience that add value to our relationship with our customers and consistently differentiate us from competition 23
Slide 24: Further Strengthen and Increase Brand Awareness and Visibility
Further Strengthen and Increase Brand Awareness and Visibility ✓ Tap various media outlets especially social media to enhance customer’s awareness ✓ Localization of advertising and promotions ✓ Use brand ambassadors to represent the Company’s products and brands ✓ Actively participate in industry as
Slide 25: Thank You!
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Slide 26: Q&A