Concepcion Industrial Corp. (CIC) saw its net income grew by 7.7 percent to P620 million in the first six months of the year compared with P575.69 million a year earlier on the back of improved sales during the summer.
In a quarterly report, the electrical appliances maker said total sales in the first semester increased by 11.2 percent to P5.4 billion from P4.8 billion in the same comparable period.
Net income in the second quarter reached P409.38 million from P361.05 million on year, while total sales grew by 18.8 percent to P3.1 billion from P2.6 billion.
“ Sales for the first six months were P5.4 billion, an 11.2-percent growth on the back of a stronger performance from both consumer and commercial air conditioning business in the second quarter of the year relative to first quarter… Second quarter sales increased… due to the intense summer peak season and a strong quarter from building and industrial solutions,” the report read.
“The residential refrigerator subsidiary Concepcion Durables Inc. continues to grow its topline while focusing on expanding profitability while new businesses Concepcion-Otis Philippines Inc. and Concepcion Midea Inc. are gaining momentum in their respective markets,” it added.
The company seems to be on track to growing both revenue and profit by 10 percent to 15 percent this year. After 2015, it will be implementing its 2020 plan of growing revenues to P50 billion from 2016 to 2020 at a rate of 20 percent to 30 percent a year.
The company’s revenue-mix consists of 70 percent from the consumer market, 25 percent from the building and industrial buyers, and 5 percent from after sales service.
By 2020, the company expects the industrial business and after sales service will account for 30 percent and 10 percent of total sales, with the consumer business making up for the balance.