MANILA, Philippines - Strong domestic demand allowed listed appliance maker Panasonic Manufacturing Philippines Corp. to post substantially higher profits in its fiscal year that ended in March.
In its financial report, Panasonic said its net income climbed nearly 40 percent to P79 million from P57 million a year ago.
This was backed by a 7.9-percent growth in revenues that hit P6.4 billion in fiscal year 2012 from P5.9 billion the previous year, while cost of sales picked up at a slower pace of 4.4 percent to P4.72 billion last year.
“Despite the typhoons and floods that ravaged the country last year, domestic demand remained steady due to the increase in overseas Filipino remittances,†Panasonic said, adding that consumption was boosted by the increase in Filipinos’ purchasing power.
Panasonic said locally manufactured products more than doubled sales last year. Specifically, turnover of freezers spiked 117 percent, followed by refrigerators (115 percent), window-type air conditioners (108 percent), washing machines (107 percent) and electric fans (107 percent).
However, export sales fell short of expectations “mainly due to fluctuating exchange rate,†Panasonic said. In September, Panasonic introduced its new gas and window-type air conditioners in Hong Kong but dealers took a wait-and-see approach, the company said.
The domestic market accounted for 86 percent of the company’s total sales last year, with the rest taken up by exports in countries like Hong Kong, Singapore, Bangladesh and Cambodia.
“Rest assured that in fiscal year 2013, we will continue to perform beyond expectations,†Panasonic said.
Panasonic is a manufacturer, importer and distributor of electronic, electrical, mechanical, electro-mechanical appliances and other types of machinery. Panasonic was originally set up as Festival Manufacturing Corp. in 1963.
The firm has a manufacturing plant for refrigerators, electric fans, air-conditioners, washing machines and flashlights in Carmelray Industrial Park II in Laguna.