Concepcion Industrial swings to profitability
LISTED firm Concepcion Industrial Corp. (CIC) reported an attributable net income of P19.32 million in the third quarter, turning around from the P24.35-million net loss a year ago, due to higher volume turnover and prices.
“Margins from higher volume and increased pricing offset headwinds from higher commodity costs and the weakening peso during the quarter,” the company said in a disclosure on Friday.
The company’s topline was also higher at P2.97 billion, a 15% jump from P2.59 billion last year after, booking higher sales of goods amid lower sales of services.
CIC’s net sale of goods totaled P2.78 billion in the third quarter, climbing by 41.7% from P1.96 billion in the previous year.
Its sales from services were lower by 69% to P193.25 million from P624.19 million.
According to the company, its consumer and commercial segments grew by 10% and 28%, respectively.
“Sales growth in the consumer channel was primarily driven by increased pricing while the commercial channel’s growth was driven by the realization of higher backlog and new orders from the opening of business establishments and easing of lockdown restrictions,” the company said.
In the nine months to September, CIC’s attributable net income was lower by 23% to P131.78 million from P171.25 million in the previous year, which it attributed to weak market and low sell-out during the rainy season and mobility restrictions in the first quarter.
Meanwhile, CIC’s year-to-date net sales were at P9.7 billion, 7.5% higher than the P9.02 billion recorded a year ago.
“The business environment remains difficult, but we have made the right investments to weather the storm, and thrive in the recovery that follows. We remain confident that the fundamentals for an eventual economic recovery are in place,” CIC Chairman and Chief Executive Officer Raul Joseph A. Concepcion said.
CIC has eight major subsidiaries and two associates. Its primary shareholders are Foresight Realty & Development Corp., Hyland Realty & Development Corp., and Horizons Realty, Inc. — Justine Irish D. Tabile
