CIC sustains growth momentum in third quarter
25 October 2023 – Concepcion Industrial Corporation (CIC), the country’s leading provider of consumer lifestyle and building & industrial solutions, delivered solid results in Q3 with net sales exceeding pre-pandemic levels. Earnings quadrupled to P139 million compared to the same period last year owing to sustained sales growth performance, better operational efficiency, and lower foreign currency loss.
CIC delivered P3.6 billion in net sales, a notable 22% growth relative to the same period last year. The growth was mainly driven by its air conditioning and elevator and escalator categories. Including its associate Concepcion Midea (CMI), the group posted P4.5 billion in net sales with a growth rate of 24%.
Consumer business generated P2.3 billion in net sales, an increase of 6% year over year. Air conditioning product sales, which represent 46% of the consumer business, grew 19% versus last year. While refrigeration sales were down 8% primarily due to lower demand for direct cool refrigerators, no frost refrigerator sales increased by 25% driven by the introduction of new models as CIC increasingly positions to play in this faster-growing segment. Other appliances continued their growth momentum posting a growth of 27% primarily from laundry product sales.
Commercial business delivered a solid performance with sales at P1.3 billion, posting 63% growth versus last year. The air conditioning business, which represents 72% of the commercial sales, grew 61% while sales in the elevator & escalator business increased by 66% due to higher project deliveries during the quarter.
For the first nine months of the year, CIC delivered P10.9 billion in sales, achieving 12% growth due to sustained performance in the last two quarters. Including CMI, net sales at P13.5 billion grew 16%. Consolidated earnings posted P489.3 million, a 64% increase year over year.
CIC Chairman & CEO, Raul Joseph A. Concepcion, said, “We have delivered promising third-quarter results despite the macroeconomic challenges. This undoubtedly demonstrates the strength of our core business, our brands, and our ability to drive growth through our expanded portfolio, end-to-end customized solutions, and long-term relationships with our customers. Our unwavering optimism in the face of these challenges has not only fueled our growth but also solidified our market leadership. We are committed to navigating the ever-changing economic landscape to provide our customers the best consumer lifestyle and commercial solutions.”