Slide 1: Wilcon Depot, Inc. FY 2019 Earnings Call
Wilcon Depot, Inc. FY 2019 Earnings Call 1
Slide 2: Discussion Agenda
Discussion Agenda 1 Results Highlights 2 Financial Results 3 Operating and Financial Statistics 4 Outlook 2
Slide 3: Results Highlights FY2019
Results Highlights FY2019 • Net income rose 15.8% y-o-y to ₱2.125 billion driven by: • Gross profit margin improvement to 33.4% from 31.4% in 2018 • Increase in net sales by 16.3% to ₱24.476 billion with a comparable sales growth of 5.2% • Six (6) new depots opened in different provinces/cities • Ex
Slide 4: Financial Results
S E CTI O N 2 Financial Results 4
Slide 5: Net Income grew 15.8% to P2.125 B
Net Income grew 15.8% to P2.125 B (FY2019) (In PHP MM) FY2019 % Sales FY2018 % Sales % Growth Net Sales up 16.3% Net Sales 24,476 100.0 21,041 100.0 16.3 Cost of Sales -16,300 -66.6 -14,438 -68.6 12.9 GPM expanded to Gross Income 8,176 33.4 6,603 31.4 23.8 33.4% Operating Expenses -5,396 -22.0 -4,42
Slide 6: Net Income grew 30.3% to P0.581B
Net Income grew 30.3% to P0.581B (4rd Quarter 2019) (In PHP MM) 4Q19 % Sales 4Q18 % Sales % Growth Net Sales up 13.4% Net Sales 6,441 100.0 5,682 100.0 13.4 Cost of Sales -4,177 -64.9 -3,887 -68.4 7.5 GPM expanded to Gross Income 2,264 35.1 1,795 31.6 26.1 35.1% Operating Expenses -1,486 -23.1 -1,27
Slide 7: Balance Sheet
Balance Sheet (In Php MM) Audited Dec 31, 2019 Audited Dec 31, 2018 Current Assets 15,023 11,123 Noncurrent Assets 11,212 6,379 Total Assets 26,235 17,502 Current Liabilities 7,234 4,171 Noncurrent Liabilities 4,339 118 Total Liabilities 11,573 4,290 Capital Stock 4,100 4,100 Additional Paid-in Capi
Slide 8: Operating and Financial Statistics
S E CTI O N 3 Operating and Financial Statistics 8
Slide 9: Healthy Sales Growth
Healthy Sales Growth SALES 25,000 24,476 20,000 21,041 17,748 15,000 15,965 14,450 13,596 10,000 11,862 5,000 2013 2014 2015 2016 2017 2018 2019 Note: 2013 to 2015 – Pro-forma/Reviewed / 2016 – In-house Pro-forma / 2017 – Actual/Audited 9 Commercial operations under WDI commenced April 1, 2016
Slide 10: Total Net Sales Breakdown
Total Net Sales Breakdown PhP Millions Home FY2019 INST'L, 349, Home FY2018 Essentials, Essentials, INST'L, 1.4% 658, 2.7% 619, 2.9% 272, 1.3% 16.3% Depots, Depots, 20,150, 23,469, 95.8% 95.9% Sales Growth per Store Format Product Category Performance FY2019 vs FY2018 FY2019 VS FY2018 28.6% 16.5% 16
Slide 11: Comparable Sales Summary
Comparable Sales Summary SSSG Excluding Inst’l/ Projects Sales Quarterly Trend • 4Q19 – 4.3% FY2019 – 4.9% • 4Q18 – 9.3% FY2018 – 9.5% 13.2% 7.9% 7.4% 8.0% 6.6% 6.3% 6.0% 5.3% 4.9% 5.2% 1.9% 1Q19 1Q18 2Q19 2Q18 3Q19 3Q18 4Q19 4Q18 1Y19 1Y18 1Y17 Note: 2016 – In-house Pro-forma Commercial operations
Slide 12: Improving Margins
Improving Margins Philippine Accounting Standard 17 - Leases Philippine Financial Reporting Standard 16 - (OLD) Leases 33.4 GPM 33.4 GPM 31.4 31.4 29.7 29.7 26.8 26.8 EBITDAM EBITDAM 17.3 13.5 11.9 11.9 10.4 10.4 9.0 9.0 EBITM 11.2 12 EBITM 11.2 12.6 9.8 9.8 8.5 8.5 2016 2017 2018 2019 2016 2017 201
Slide 13: Outlook
S E CTI O N 4 Outlook 13
Slide 14: 2019 - 2020 Store Expansion Plan
2019 - 2020 Store Expansion Plan 2019 2020 2019: 3 Beg. balance 51 57 2020: 7 Panacan, Davao Daraga, Albay Sta. Barbara, Iloilo San Jose, Del Monte 1H Cabuyao, Laguna 2019: 1 Calumpit, Bulacan 2020: 2 Opol, CDO Makato, Aklan San Isidro, Antipolo Commonwealth City 2H Sto. Tomas City, Taytay 2019: 2 B
Slide 15: 2017 - 2020 Planned New Branches
2017 - 2020 Planned New Branches 50 16 9 7 7 6 Total Planned New Depot Stores - 29 Total number of stores in 2020 - 66 From January 2017 to December 2019, twenty one (21) new stores were opened, twenty (20) depots and one (1) smaller format Home Essentials. 15
Slide 16: Continue to increase margins thru in-house & exclusive brands expansion
Continue to increase margins thru in- house & exclusive brands expansion 16
Slide 17: Disclaimer
Disclaimer This presentation does not constitute a prospectus or any kind of offering memorandum in whole or in part. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company. There shall be no sale of these securities in any state o