Industrial appliance manufacturer Concepcion Industrial Corp. (CIC) said it saw midyear profits jump sharply, because of peak summer months’ sales.
In a statement, CIC said its net income for the first six months of the year surged 45 percent to P346 million from P238.9 million in the first half of last year.
“This was achieved on the back of net sales of P4.8 billion for the period, a 28-percent increase from year-ago numbers,” the company said.
For second quarter alone, CIC expanded its sales by 21 percent, as well as product profitability by 54 percent compared to the same time last year.
The increase in appliance sales was due to various business segments, as well as the profitability in refrigeration business driven by high-margin products, and returns on earlier cost reductions.
The company also noted that profits were up on the acquisition of Concepcion Otis Philippines Inc. in March.
“The impressive results reflect the positive macroeconomic environment, CIC’s core business gaining ground during the first half of 2014 and the boost received from contribution of our acquisitions,” CIC Chief Executive Officer and Chairman Raul Joseph Concepcion was quoted as saying.
“We will continue to see growth in the second half but on a slower pace compared to the earlier part of the year as we move away from our peak months,” Concepcion added.
“Our further push for cost productivity has gained traction as this discipline is shared across all our core businesses and new acquisitions. These have resulted in stronger profitability without undermining topline momentum,” CIC Chief Finance and Information Officer Victoria Betita said.
Incorporated in 1997, CIC manufactures refrigerator and similar appliances under brands Kelvinator, Carrier, Condura and Toshiba.