CIC attributes income growth to core business strength

LISTED Concepcion Industrial Corp. (CIC) saw a 10% increase in net income, reaching P257.1 million for the second quarter, driven by its core business segments.

“Our second quarter performance demonstrated the strength of our core business and our ability to drive growth through our expanded portfolio, end-to-end customized solutions, and long-term relationships with our customers,” said CIC President and Chief Executive Officer Raul Joseph A. Concepcion in a press release.

For the three-month period, the company’s top line rose to P4.4 billion, a 20% increase from the previous year, while gross profits went up by 7% to P1.3 billion.

“We will continue to focus on these fundamentals, continue to generate operating leverage and explore business opportunities to complement our strategy that would reinforce our position as the top consumer lifestyle and building and industrial solutions provider in the country,” Mr. Concepcion said.

Additionally, buoyed by better sales volume during the second quarter, the company recorded a consolidated net income of P350.3 million for the first half of the year, representing a 33% increase from the same period last year.

The favorable impact of foreign exchange rates and income contribution from its associate, Concepcion Midea, Inc. (CMI), also contributed to the boost in its bottom-line for the six-month period.

CIC also reported an 8% rise in net sales to P7.2 billion for the first semester, driven by an 18% increase in its air conditioning business and a 112% increase in other appliance categories, particularly laundry products.

However, the top line was offset by declines in the elevator equipment and refrigerator businesses.

The company said that its consumer segment accounted for the largest share of sales at 74%, driven by strong demand for window room air conditioners and laundry products, leading to a 3% year-on-year sales growth to P5.3 billion, partially offset by lower demand for refrigerators.

Its commercial business, which contributed 26% to revenues, reported a 23% increase in sales to P1.9 billion due to higher project deliveries of refrigerants and commercial systems.

“The aftermarket business for both air conditioner and elevator businesses delivered 23% year-on-year growth. This was offset in part by lower elevator equipment sales due to a higher base coming from a large project last year,” the company said. — Adrian H. Halili