Wilcon Depot, Inc. · PSE:WLCON
Wilcon Depot — H1 2024 Earnings Presentation
22 slides from Wilcon Depot's earnings presentation, Jul 31, 2024
Slide 1: Earnings Conference Call July 31, 2024
oo EARNINGS CONFERENCE CALL JULY 31, 2024 | 4:00 PM A con
Slide 2: Disclaimer
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”, “may”, “plans”, “foresees”, “ta
Slide 3: Second Quarter 2024 Results
SECOND QUARTER 2024 RESULIS \ ieee
Slide 4: 2Q 2024 Results Highlights
2Q 2024 RESULTS HIGHLIGHTS Financial Highlights Comparable Sales Summary 2nd QUARTER 2024 VILLAMONTE, BACOLOD ✓ Php 8.8B Net Sales -2.0% SSSG ✓ 2.9% y-o-y Net Sales 0.3% Transaction Count growth -2.3% Ticket Size ✓ Php 770M NIAT ✓ -10% y-o-y NIAT Total Sales Mix STA. BARBARA, PANGASINAN Growth 51.5%
Slide 5: Total Net Sales Breakdown – 2Q 2024
Total Net Sales Breakdown – 2Q 2024 Php Millions 2Q2024 Projects, Do-It-Wilcon, 2Q2023 Projects, Do-It-Wilcon, 123, 1.4% 181, 2.1% 110, 1.3% 255, 2.9% 2.9% Depots, Depots, 8,496, 95.7% 8,333, 96.6% Sales Growth per Store Format Product Category Performance 2Q2024 VS 2Q2023 2Q2024 VS 2Q2023 40.8% Bet
Slide 6: Comparable Sales Summary
Comparable Sales Summary Quarterly Trend 79.7% 23.5% 15.0% 10.4% 3.3% 8.6% 9.8% -2.0% -5.7% -7.1% 0.8% -7.3% -8.0% -3.4% -47.6% -9.3% 0.4% -0.5% 1Q24 1Q23 1Q22 1Q21 1Q20 2Q24 2Q23 2Q22 2Q21 2Q20 3Q23 3Q22 3Q21 3Q20 4Q23 4Q22 4Q21 4Q20 Comparable Sales per Format Comparable Ticket Size and Number of
Slide 7: Second Quarter 2024 Income Statement
SECOND QUARTER 2024 2Q 2024 % of Sales 2Q 2023 % of Sales +/- % GROWTH Net Sales 8,873 100.00 8,624 100.00 249 3% Cost of sales (5,354) (60.34) (5,217) (60.49) (137) 3% GPM rate 3,519 39.66 3,408 39.51 112 3% Gross Profit increased to 39.7% Operating expenses (2,440) (27.49) (2,207) (25.59) 232 11%
Slide 8: First Half 2024 Results
FIRST HALF 2024 RESULTS — % —M
Slide 9: 1H 2024 Results Highlights
1H 2024 RESULTS HIGHLIGHTS Financial Highlights Comparable Sales Summary Php 1.398B -4.6% SSSG ✓ Php 17.2B Net Sales CAPEX -3.7% Transaction Count ✓ 0.2% y-o-y Net Sales growth -1.0% Ticket Size Opened 5 New Stores Total Sales Mix ✓ Php 1,510M NIAT 52.0% 1st HALF 2024 ✓ 39.8% GPM In-house & exclusiv
Slide 10: Total Net Sales Breakdown – 1H 2024
Total Net Sales Breakdown – 1H 2024 Home 6M2023 Projects, Home 6M2024 Projects, Essentials, 161, 1.0% Php Millions Essentials, 227, 1.3% 351, 2.0% 488, 2.8% 0.2% Depots, Depots, 16,469, 95.8% 16,640, 97.0% Sales Growth per Store Format Product Category Performance 6M2024 VS 6M2023 1H2023 VS 1H2022 B
Slide 11: Comparable Sales Summary
Comparable Sales Summary 44.7% Trend 16.9% 14.2% 12.1% 11.8% 4.9% 5.7% 5.2% -4.6% -0.1% -27.8% -6.4% 0.0% -3.4% -13.6% -4.2% Comparable Ticket Size and Number of Transactions Comparable Sales per Format 1H2024 vs 1H2023 1H2024 vs 1H2023 ticket size, 41.5% 4.3% 35.8% ticket size, -1.0% 1H2024 1H2023
Slide 12: First Half 2024 Income Statement
FIRST HALF 2024 % Growth YTD 2024 % of Sales YTD 2023 % of Sales +/- y-o-y Net Sales 17,184 100.0 17,152 100.0 32 0.2% Cost of sales (10,345) (60.2) (10,381) (60.5) 36 -0.3% GPM rate increased to 39.8% Gross Profit 6,839 39.8 6,771 39.5 69 1.0% Operating expenses (4,742) (27.6) (4,367) (25.5) (375)
Slide 13: Balance Sheet
Balance Sheet (In Million Php) Unaudited Audited Current Assets 17,954 19,749 Noncurrent Assets* 20,371 20,032 Total Assets 38,325 39,781 Current Liabilities 7,109 9,097 Noncurrent Liabilities 8,262 8,175 Total Liabilities 15,371 17,272 Capital Stock 4,100 4,100 Additional Paid-in Capital 5,374 5,37
Slide 14: 1H2024 CAPEX Investment
1H2024 CAPEX Investment ‘WILCON DEPOT, INC. CAPITAL EXPENDITURES ACT vs LY AS OF June 30, 2024 a ( Construction of New Stores and New Warehouses 1,078.63 Store and Transportation Equipment 203.81 Renovation and Repairs 95.84 IT Infrastructures & Softwares 19.81
Slide 15: Improving Margins
Improving Margins 39.1 39.6 39.8 GPM 37.3 34.4 33.4 31.4 29.7 18.6 17.1 15.8 15.4 EBITDAM 13.1 11.9 11.9 15.2 10.4 13.4 11.7 11.2 11.4 12.3 EBITM 9.8 8.8 11.5 9.3 10.1 8.7 8.7 8.8 NPM 7.8 6.4 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 1H2024 Note: ROU depreciation and interest expense charged
Slide 16: Returning Value to Shareholders
Returning Value to Shareholders Cash Dividend per share over time: (Php/share) 16
Slide 17: Key Growth Strategies
Store network expansion KEY GROWTH Continue to build and develop in-house products and carry exclusive brands Physical and online store layout, features STRATEGIES and customer experience enhancements Further strengthen and increase brand awareness and visibility 17
Slide 18: 1H2024 New Branches
1H2024 New Branches 71 1 2024 Beginning Bal. 90 1st Half January 12 DIW – Morong, Rizal 10 January 26 DIW – Valencia, Bukidnon 0 March 22 Depot – Koronadal, South Cotabato May 31 Depot – Villamonte, Bacolod 11 June 7 Depot – Sta Barbara, Pangasinan 2 2nd Half 5 Depots Total, End 100 Total New Depot/
Slide 19: 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 • Optimize product lines/ ✓ Enhance the Company’s ability to product offerings provide its customers with value for money products; ✓ Rationalize
Slide 20: 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 20
Slide 21: 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 22: Thank You!
THANK YOU!