A wider product portfolio, retail presence and distribution network as well as a hotter weather in the first quarter helped double the net income to P186 million of Concepcion Industrial Corp., the country’s leading provider of consumer lifestyle and industrial products.
Net sales in the first quarter, including those of affiliate Concepcion Midea Inc., increased 34 percent to P5 billion.
Consumer business accounted for P2.8 billion, which rose 33 percent during the period. Sales of air-conditioning units rose 30 percent while refrigeration products increased 60 percent.
The commercial business saw sales rise 31 percent and contribute P981 million to group sales. This was primarily driven by distribution network expansion, increased sales of heating, ventilation, and air conditioning (HVAV) equipment, and advancements in both air conditioning and elevator projects. Aftermarket services also played a role in the overall increase.
Gross profit increased 31 percent to P1.3 billion.
“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,” said Rajan Komarasu, chief financial officer at Concepcion Industrial.
Concepcion Industrial chief executive officer Ariel Fermin said while results of the first quarter was encouraging, the company needs to be cautious due to economic headwinds.
“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,” he said.
