CIC’s Net Earnings Triple in Q1 2023
26 April 2023 – Concepcion Industrial Corporation (CIC), the country’s leading provider of consumer lifestyle and building & industrial solutions, delivered strong growth in operating income, with its consolidated net income increasing by 204% to P93.2 million from the P30.6 million recorded in the same quarter a year ago despite a slow sales start for the quarter.
Reported net sales was at P2.9 billion, a 7% decline from the same period in 2022 as a result of the late onset of summer, phasing in of new models and the impact of inflationary pressures, slowed down market demand.
The Consumer segment generated net sales of P2.1 billion during the quarter, 8% lower against last year. This is primarily attributed to the lower retail demand in February and most of March, phasing in of new products and delayed orders resulting from the late onset of summer leading to end of the quarter sales
that could not be fulfilled.
The Consumer segment generated net sales of P2.1 billion during the quarter, 8% lower against last year. This is primarily attributed to the lower retail demand in February and most of March, phasing in of new products and delayed orders resulting from the late onset of summer leading to end of the quarter sales
that could not be fulfilled.
The Commercial business’ first quarter net sales declined by 2% to P0.8 billion. While Commercial HVAC (heating, ventilating and air conditioning) segment grew 26% for the quarter, the elevator and escalator new equipment segment was down 65% due to the completion of a large project last year.
Cost of sales and services decreased by 10% to P1.9 billion with lower logistic costs, cost negotiations, better factory absorption, and favorable foreign exchange.
CIC Chairman & CEO, Raul Joseph A. Concepcion, said, “We expect sales performance to improve for the rest of the year with new product introductions, as well as distribution expansion activities. We will continue to pursue cost efficiency measures in order to sustain profitable growth.”
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Concepcion Industrial Corporation