Wilcon in Q1: Margin pressures temper demand recovery
From AB Capital's The Opening Bell: Three Moves
Event
Below expectations: Net income of P563 million (+4.9% YoY) came in at 18% of FY forecasts (vs ~23% seasonal norm), dragged by weaker margins and higher opex.
View
Revenues grew 9.1% YoY, with SSSG +4.6% (3rd straight positive quarter), likely helped by some forward buying.
Catalyst
Margins under pressure: GPM -180bps YoY to 37% on weaker SKU mix and lower in-house contribution; opex growth (+7.8%) outpaced gross profit (+4.0%), limiting operating leverage.
Action
Near-term supported by improving demand and 6.5% yield (P0.40 DPS), but inflation and discretionary slowdown remain key risks.
Disclaimer: The information, analyses, and views contained herein is based on sources which we, AB Capital Securities, believe are reliable, but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or solicitation of an offer to sell or buy the securities herein mentioned. AB Capital Securities and its Directors and Officers and/or members of their families may have a position in the securities herein mentioned and may make purchases and/or sales of the securities from time to time in the open-market and otherwise.
- Latest
