Concepcion Industrial Corp., manufacturer of refrigerators and air-conditioning, on Thursday reported income rising 33 percent in the second quarter to P350.3 million from last year’s P263.76 million on stronger sales.
The company attributed this development to the favorable impact of foreign exchange rates and income contribution of its associate, Concepcion Midea Inc, allowing the business to generate net sales of P7.23 billion in the first half, an 8 percent growth from last year’s P6.72 billion.
“Our second quarter performance demonstrated the strength of our core business and our ability to drive growth through our expanded portfolio, end-to-end customized solutions, and long-term relationships with our customers,” company chairman and CEO Raul Joseph A. Concepcion said.
During the period, its income grew 10 percent to P257.08 million from last year’s P233.12 million.
Its air conditioning business grew 18 percent and its other appliance business, mainly laundry products, more than doubled.
This was, however, offset by the decline in the elevator equipment and refrigerator businesses.
The consumer segment accounted for the largest proportion of sales at 74 percent. The strong demand for window room air conditioner and laundry products led to 3 percent year-on-year sales growth to P5.3 billion in the first half.
The growth was, however, partly offset by lower demand for refrigerators.
The company said its commercial business, representing the remaining 26 percent of sales, posted a 23 percent increase in net sales to P1.9 billion in view of higher project deliveries.
The aftermarket business for both air conditioner and elevator businesses delivered 23 percent year-on- year growth. This was offset in part by lower elevator equipment sales due to a higher base coming from a large project last year.
Its unconsolidated associate, Concepcion Midea, had strong sales across all product lines of P1.8 billion, 32 percent higher than last year.
It posted a net income of P54.8 million, reversing last year’s loss of P98.4 million.
Net sales jumped 20 percent to P4.4 billion, allowing net income to rise 10 percent to P257.1 million.
