REFRIGERATION and air-conditioning specialist Concepcion Industrial Corp. (CIC) on Wednesday reported that its net profit in the first half was 40 percent higher than a year ago on increased demand for its cooling products amid a prolonged and hotter summer season this year.
In a disclosure to the Philippine Stock Exchange (PSE), the company said the earnings growth was attained on the back of a 25 percent increase in sales during the period.
The company did not provide actual figures in its disclosure to the PSE.
But based on its reported P368.52 million net income in the first half of 2015, the 40 percent profit growth in January to June of this year translates to about P515.9 million.
Similarly, CIC generated gross revenues of P1.77 billion in the first six months of 2015, hence a 25 percent growth in sales for the same period this year is estimated at P2.21 billion.
Known for its Carrier and Condura, Kelvinator, and Toshiba brands, listed CIC attributed its strong sales in the period to favorable market conditions, strong performances across all businesses, progress on key strategic priorities and operational execution.
“CIC saw strong tailwinds in the beginning of 2016 driven by high consumer and business confidence and good macroeconomic nutmbers driving the performance across all segments,” said Raul Joseph Concepcion, CIC chairman.
“There was really an uptick in the demand for air-con during the period, we have seen a long summer and it was very hot,” Concepcion said at the company stockholders’ meeting held recently.
All business segments showed significant increases particularly in residential and commercial air-conditioning, buoyed by first-time buyer growth as well as expansion in commercial and office space development.
“Delivering sustainable profitable growth and building a firm foundation remains to be our key priorities,” CIC chief finance and information officer Victoria Betita said.
“Savings in material and operational costs and overhead efficiency, synergistic explorations and bad cost eliminations funded key growth investments in employee capabilities, staff training and engagement which we will continue to focus on well into 2016,” she added.