Publicly-listed home improvement and construction supply giant, Wilcon Depot, said it still suffers from the macroeconomic headwinds, primarily inflation and high interest rates that the country’s economy is experiencing.

“We are doing everything we can to at least have the positive SSG (self-sustainable growth) for the year, with the negative 7 SSG we had for the first quarter. But we would have a kinder base starting in the third quarter, especially in the 3rd quarter,” said Wilcon Investor Relations Officer Mary Jean G. Alger during a virtual press conference on Monday.

“But in terms of a complete turnaround, to be realistic about it, with the macro still as it is today, it’s, really, an uphill climb and battle,” she added.

The Philippines' headline inflation or overall inflation increased to 3.9 percent in May 2024 from 3.8 percent in April 2024, the Philippine Statistics Authority said.

While the Bangko Sentral ng Pilipinas upheld its benchmark interest rate at 6.50 percent for the fifth consecutive meeting in May 2024, confirming market forecasts, and maintaining its highest level since 2007 amidst escalating inflationary pressures.

10 stores in the pipeline

Meanwhile, Alger said for this year, they are targeting to open 10 stores, with a capital expenditure (CAPEX) of P2 billion to P2.2 billion because some of the stores they opened, particularly in the first quarter, were all spillover from CAPEX 2023.

“Globally, even with our competitors here, there is a softness of demand when it comes to home improvement. But in 2023, we still had a little bit of growth because our expansion has been continuing,” Alger said.

In a Philippine Stock Exchange disclosure last March 2024, it said that net sales for the year 2023 hit P34.6 billion following the dipping of store sales by 3.4 percent.

For the fourth quarter of 2023, Wilcon’s net sales were 2.11 percent lower at P8.66 billion.