Wilcon Depot, Inc. · PSE:WLCON
Wilcon Depot — FY2023 Earnings Presentation
24 slides from Wilcon Depot's earnings presentation, Mar 22, 2024
Slide 1: Earnings Conference Call
EARNINGS CONFERENCE CALL MARCH 22, 2024 | 4:30 PM
Slide 2: Fourth Quarter 2023 Results
® | f rt ) Fan \ WRN Sit ee. FOURTH QUARTER 2023 RESULTS
Slide 3: 4Q 2023 Results Highlights
4Q 2023 RESULTS HIGHLIGHTS Financial Highlights Comparable Sales Summary 4th QUARTER 2023 -7.1% SSSG NAIC, CAVITE ✓ Php 8.661B Net Sales ✓ -2.1% y-o-y Net Sales -8.2% Transaction Count growth 1.2% Ticket Size ✓ Php 757M NIAT TUY, BATANGAS ✓ -14.7% y-o-y NIAT Total Sales Mix Growth 52.1% In-house & e
Slide 4: Total Net Sales Breakdown – 4Q 2023
Total Net Sales Breakdown – 4Q 2023 Php Millions Home 4Q2023 Projects, Home 4Q2022 Projects, Essentials, 171, 2.0% Essentials, 106, 1.2% 192, 2.2% 180, 2.0% 2.1% Depots, Depots, 8,298, 95.8% 8,563, 95.8% Sales Growth per Store Format Product Category Performance 4Q2023 VS 4Q2022 4Q2023 VS 4Q2022 Bet
Slide 5: Comparable Sales Summary
Comparable Sales Summary 79.7% Quarterly Trend 23.5% 10.4% 15.0% 8.6% 9.8% 0.8% -0.5% 0.4% 3.3% -7.1% -5.7% -9.3% -3.4% -47.6% -8.0% 4Q23 4Q22 4Q21 4Q20 3Q23 3Q22 3Q21 3Q20 2Q23 2Q22 2Q21 2Q20 1Q23 1Q22 1Q21 1Q20 Comparable Sales per Format Comparable Ticket Size and Number of Transactions 4Q2023 vs
Slide 6: Fourth Quarter 2023
FOURTH QUARTER 2023 GPM rate increased to 39.8% Lease-related expense 6
Slide 7: Twelve Months 2023 Results
TWELVE MONTHS 2023 RESULTS
Slide 8: FY2023 Results Highlights
FY2023 Results Highlights 70 LUZON 90 Financial Highlights Comparable Sales Summary Php 2.358B CAPEX Stores ✓ Php 34.604B Net Sales -3.4% SSSG Opened 9 ✓ 3.1% y-o-y Net Sales -6.1% Transaction Count new stores growth 9 2.9% Ticket Size 1ST HALF 2023 VISAYAS ✓ Php 3.483B NIAT • Guiguinto, Bulacan Tot
Slide 9: Total Net Sales Breakdown – FY2023
Total Net Sales Breakdown – FY2023 Home FY2023 Projects, Home FY2022 Projects, Php Millions Essentials, Essentials, 540, 1.6% 316, 0.9% 741, 2.1% 640, 1.9% 3.1% Depots, Depots, 33,323, 96.3% 32,615, 97.2% Sales Growth per Store Format Product Category Performance FY2023 VS FY2022 FY2023 VS FY2022 Be
Slide 10: Comparable Sales Summary Trend
Comparable Sales Summary 44.7% Trend 16.9% 11.8% 14.2% 12.1% 4.9% 5.7% 5.2% 0.0% 0.0% 1H2023 1H2022 1H2021 1H2020 1H21019 2H2023 2H2022 2H2021 2H2020 2H2019 FY2023 FY2022 FY2021 FY2020 FY2019 -6.4% -4.2% -3.4% -13.6% -27.8% Comparable Sales per Format Comparable Ticket Size and Number of Transaction
Slide 11: For Year 2023
For Year 2023 (In Php MM) FY2023 % Sales FY2022 % Sales % Growth Net Sales 34,604 100.0 33,571 100.0 3.1% Cost of sales (20,910) (60.4) (20,445) (60.9) 2.3% GPM rate increased to 39.6% Gross Profit 13,694 39.6 13,126 39.1 4.3% Operating expenses (8,940) (25.8) (7,882) (23.5) 13.4% Lease related Expe
Slide 12: Balance Sheet
Balance Sheet Current Assets 19,749 17,385 Noncurrent Assets 20,032 18,258 Total Assets 39,781 35,643 Current Liabilities 9,097 7,659 Noncurrent Liabilities 8,175 7A41 Total Liabilities 17,272 15,100 Capital Stock 4,100 4,100 Additional Paid-in Capital 5,374 5,374 Other Comprehensive Loss 177 177 Re
Slide 13: FY2023 CAPEX Investment
FY2023 CAPEX Investment Construction of New Stores and New Warehouses 1,804 Store and Transportation Equipments 345 Renovations & Repairs 167 IT Infrastructures & Softwares 41
Slide 14: Improving Margins
Improving Margins Note: ROU depreciation and interest expense charged on lease liability were considered as rent expense for 2019, 2020, 2021, 2022 and 2023 . 14
Slide 15: Returning Value to Shareholders
Returning Value to Shareholders Cash Dividend per share over time: (Php/share) 15
Slide 16: 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 and STRATEGIES customer experience enhancements Further strengthen and increase brand awareness and visibility 16
Slide 17: 2024 Planned New Branches
2024 Planned New Branches 70 7 2024 Beg Balance 90 1st Half Jan, 2024 DIW - Morong, Rizal 9 Jan, 2024 DIW - Valencia, Bukidnon 1 Mar, 2024 Depot - Koronadal, South Cotabato 2 Depots 11 2nd Half 5 Depots 2 Total, End 100 Total Planned New Depot/Home Essentials Stores: 10 Total number of stores in FY2
Slide 18: FY2024 CAPEX Budget
FY2024 CAPEX Budget Construction of New Stores and New Warehouses 1,200 Stores, Head Offices, and Warehouses, Furniture and Equipments 200 Renovations & Repairs 550 IT Infrastructures & Softwares 150
Slide 19: Continue to Expand Margins Thru Increasing the Profitability of 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, features 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!
Slide 23: Q&A
Q&A
Slide 24: 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