Concepcion Industrial Corp.’s Earnings Double In Q1 2024 To PHP186 Million

Concepcion Industrial Corporation (CIC), an active provider of consumer lifestyle and industrial solutions, has reported that its consolidated earnings in the first quarter (Q1) of 2024 amounted to PHP186 million, twice as much as the figure in Q1 of the previous year.

CIC's substantial growth was driven by higher volume, largely attributed to improved retail presence and distribution channels, a wider product portfolio, and the impact of prevailing hot weather conditions. I Photo: Concepcion Industrial Corporation

The company disclosed to the Philippine Stock Exchange (PSE) that this substantial growth was driven by higher volume, largely attributed to improved retail presence and distribution channels, a wider product portfolio, and the impact of prevailing hot weather conditions.

Rajan Komarasu, CFO, stated, "We are pleased that we have exceeded the commitment for the quarter, which is a testament to the hard work and dedication of our people, and the effectiveness of our strategies which have been in motion since 2023.”

CIC also reported achieving Q1 net sales of PHP3.8 billion, a 33% increase from the figure in the same period last year, with notable growth across business segments.

Including its associate Concepcion Midea, Inc. (CMI), the group reached PHP5 billion in net sales with growth of 34%. The company noted that its Consumer Business recorded PHP2.8 billion in net sales, a 33% year-on-year increase.

Air conditioning product sales grew by 30%, while refrigeration products realized an increase of 60% from consistent monthly sales performance, owing to the launch of new models and improved retail presence.

Meanwhile, the Commercial business achieved PHP981 million in net sales, representing a 31% growth compared to the prior year.

CIC attributed this growth to the increased sales of HVAC equipment, fueled by distribution expansion, and advancements in both air conditioning and elevator projects. Additionally, the growth in aftermarket services also played a role in the overall increase.

Gross profit also increased to PHP1.3 billion, up 31% from the corresponding period due to higher sales across all business segments.

Ariel Fermin, CEO of CIC, commented, “We are encouraged with the results of our performance, but we need to remain cautious as we face challenges and opportunities in the coming year.

The foundation of CIC is strong, and the key now is to transform with customer centricity as our value discipline. This will not only drive growth and profitability but also strengthen our relationships with our valued customers.”