Concepcion maintains upward trajectory concluding 2023 with solid performance
31 January 2024 – Concepcion Industrial Corporation (CIC), the country’s leading provider of consumer lifestyle and building & industrial solutions concluded the year with a strong finish posting an unaudited Q4 consolidated earnings of Php 177.9 million, 195% higher than last year attributable to better margins and solid sales performance.
CIC delivered consistent quarterly growth, achieving Php 3.8 billion in Q4 net sales, marking a 9% increase relative to the same period last year, with notable sales growth in the Commercial business. Including its associate Concepcion Midea, Inc. (CMI), the group posted Php 4.7 billion in net sales, increasing its sales growth rate to 14%.
The Commercial business generated Php 1.4 billion in net sales, a remarkable 33% growth compared to last year. The increase was attributable to HVAC equipment sales driven by distribution expansion efforts as well as the timely arrival of elevator equipment and significant progress in both air conditioning and elevator projects.
The Consumer business contributed Php 2.4 billion in net sales, a slight decline of 1% relative to last year. The decrease was due to lower demand for window room air conditioners and direct cool refrigerators. This was mitigated by growth in no frost refrigerators and laundry products.
Gross profit ended 33% higher versus the corresponding period to Php 1.2 billion, growing faster than the top line.
CIC’s strong performance in the fourth quarter contributed to the business’ upward trajectory, concluding the year with a strong finish. CIC ended the year with Php 14.7 billion in net sales and Php 667.3 million in consolidated earnings, achieving 11% and 86% growth, respectively. Including CMI, the group reached 15% growth to Php 18.2 billion net sales.
Raul Joseph Concepcion, Chairman & President, said, “CIC has shown time and again our ability to overcome challenges as our resilient business allows us to adapt quickly and pivot when the situation calls for it. As we reflect on our achievements in 2023, we look ahead with optimism, ready to welcome opportunities and face the challenges of 2024. CIC is well-positioned to capitalize on emerging opportunities, and our commitment to innovation, customer satisfaction, and operational excellence remains firm. We continue to embark on a promising journey, confident in our ability to drive growth and deliver value to our stakeholders.”
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