Wilcon net income down 32.1% in Q1 as ECQ weighs down sales

Wilcon Depot Inc. saw its net income drop by 32.1% in the first three months of 2020, as its sales were weighed down by the implementation of an enhanced community quarantine (ECQ) during the period.

In a regulatory filing, Wilcon reported a drop in its net income to P328 million from P484 million in the comparable period last year. Net sales likewise fell 2.5% to P5.591 billion from P5.734 billion.

"Wilcon Depot was not spared from closure when the Enhanced Community Quarantine (ECQ) was imposed by the Philippine government over Luzon on March 17, 2020," said Wilcon president and chief executive officer Lorraine Belo-Cincochan.

"Under the ECQ, our line of business was excluded from the 'essentials category," she added.

Metro Manila, along with several "high-risk areas," has been on lockdown since March 17, with the ECQ already having been extended twice to last until May 15.

Wilcon said it had to close down 44 branches during the period, accounting for 84% of its net sales prior to the ECQ.

"It was unfortunate that we had to close because we were doing so well pre-ECQ but of course the well-being and health of everyone are paramount," said Belo-Cincochan.

The company also attributed the decline to higher operating expenses which rose 19.7% or P236 million to P1.433 billion during the period, mainly on higher lease and manpower related expenses.—AOL, GMA News