Wilcon Depot, Inc., a publicly listed retailer specializing in home improvement and construction supplies, reported a 16.9 percent decline in its first-half net income, falling to P1.51 billion from P8.8 billion last year.

In a stock exchange report on Wednesday, the company attributed the profit decrease to higher operating expenses that outpaced net sales growth as it works to expand its nationwide presence.

“We are looking forward to a better second half as we continue to push for higher sales while re-aligning resources deployed with the current market demand. We are continuing with our store network expansion program, opening five new stores for the first half and on track to reach our 100-store target by the end of the year,” Wilcon’s President and CEO, Ms. Lorraine Belo-Cincochan said.

During the first six months, net sales reached P17.184 billion, nearly matching the level achieved in the first half of 2023. This represents a modest increase of about P32 million or 0.2 percent compared to the same period last year.

The growth was primarily due to sales generated by newly opened stores, which helped offset a 4.6 percent decline in comparable sales.

Operating expenses, including lease-related interest expenses, increased by P400 million or 8.6 percent to P5.077 billion. In contrast, operating other income decreased by P69 million or 22.1 percent to P244 million compared to the previous year.

From January to June, Wilcon opened five new stores, bringing the total number of branches to 95 by the end of the period.