Wilcon Depot, Inc. posted a 4.9 percent growth in first-quarter net income to P563 million, driven by solid sales growth and a surge in advance purchases ahead of expected price hikes.

The listed firm said on Tuesday that net sales rose 9.1 percent to P9.17 billion in the January–March period, supported by same-store sales and contributions from newly opened stores.

“Overall sales results exceeded our expectations, particularly in March, which faced a challenging high-base comparison from the prior year. This outperformance may have partly been driven by advance purchases from customers with ongoing projects, who accelerated buying in anticipation of potential price increases linked to rising oil prices amid the ongoing conflict in the Middle East,” said Wilcon President and CEO Lorraine Belo-Cincochan.

The company also credited internal improvements for boosting performance.

“We’ve implemented some strategic initiatives to improve our customer service, and these upgrades are helping us drive higher conversions and bigger ticket sizes through a much better customer experience and smarter merchandising,” Belo-Cincochan said.

Sales growth was fueled by a 4.7 percent rise in comparable store sales and additional revenue from three new depots in Luzon.

Depot-format stores contributed P8.828 billion, or 96.3 percent of total net sales, up 8.8 percent year-on-year. Do-It-Wilcon stores generated P285 million, up 10.4 percent, while project sales jumped 62.9 percent to P56 million, albeit from a smaller base.

Gross profit increased 4 percent to P3.394 billion, but margins slipped to 37 percent due to a higher share of lower-margin non-exclusive products. The share of exclusive and in-house brands declined to 51.7 percent.

Operating expenses rose 4.1 percent to P2.771 billion, mainly due to higher depreciation from new stores and leases, as well as increased utilities, logistics, and outsourced service costs.

Other income grew 8.7 percent to P120 million, supported by better collections of supplier-related fees and rental income.

Capital expenditures reached P417 million, or 16.1 percent of the full-year budget, as Wilcon continued its expansion.

Despite market uncertainty, the company remains on track to open eight stores this year, with three already launched and five more under construction.

“While the situation in the Middle East creates some uncertainty and may temporarily disrupt our growth trajectory, we’re confident in our direction and the resilience of our business. We’re staying agile and prudent, as always, and are prepared to navigate any headwinds that come our way,” Belo-Cincochan said.