LISTED supplier of consumer brands Concepcion Industrial Corp. (CIC) reported a surge in third-quarter net income on the back of higher net sales and improved operational efficiency.
In a regulatory filing on Wednesday, CIC said earnings for the quarter quadrupled to P139.04 million from P33.96 million in the same period last year.
The company posted a 22% increase in net sales to P3.6 billion from P2.97 billion a year ago.
“The growth was mainly driven by its air conditioning and elevator and escalator categories. Including its associate Concepcion Midea (CMI), the group posted P4.5 billion in net sales with a growth rate of 24%,” CIC said.
CIC said its consumer business posted a 6% increase in net sales to P2.3 billion led by air-conditioning products.
“Air conditioning product sales, which represent 46% of the consumer business, grew 19% versus last year. While refrigeration sales were down 8% primarily due to lower demand for direct cool refrigerators, no frost refrigerators sales increased by 25% driven by the introduction of new models as CIC increasingly positions to play in this faster-growing segment,” CIC said.
“Other appliances continued their growth momentum posting a growth of 27% primarily from laundry product sales,” it added.
CIC said the sales of its commercial business also grew by 63% to P1.3 billion.
“The air conditioning business, which represents 72% of the commercial sales, grew 61% while sales in the elevator and escalator business increased by 66% due to higher project deliveries during the quarter,” CIC said.
For the nine months to September, CIC posted a 64% increase in net income to P489.3 million from P297.72 million as net sales increased.
The company’s sales rose 12% to P10.9 billion compared with P9.70 billion last year.
“We have delivered promising third-quarter results despite the macroeconomic challenges. This undoubtedly demonstrates the strength of our core business, our brands, and our ability to drive growth through our expanded portfolio, end-to-end customized solutions, and long-term relationships with our customers,” CIC Chairman and Chief Executive Officer Raul Joseph A. Concepcion said.
“Our unwavering optimism in the face of these challenges has not only fueled our growth but also solidified our market leadership. We are committed to navigating the ever-changing economic landscape to provide the best consumer lifestyle and commercial solutions to our customers,” he added.
CIC shares were last traded on Oct. 24 at P15.20 apiece. — Revin Mikhael D. Ochave