Concepcion Industrial earnings surge 45% to P346 M in H1

MANILA, Philippines - Robust sales from both consumer and industrial segments boosted the earnings of local appliance maker Concepcion Industrial Corp. (CIC) in the first half of the year.

In a regulatory filing, CIC said its net profit surged 45 percent to P346 million in the first semester as net sales jumped 28 percent to P4.8 billion from a year ago.

Key income drivers were the strong sales performance of both the consumer and the building and industrial solutions segments, CIC said.

It also attributed the income growth to increased profitability in the refrigeration business as investments in high-margin products and cost reductions begin to pay off, the company added.

“The impressive results reflect the positive macroeconomic environment, CIC’s core business gaining ground during the first half of 2014 and the boost received from contribution of our acquisitions,” said CIC CEO and chairman Raul Joseph A. Concepcion.

In March, CIC ventured into escalators and elevators after acquiring Otis E&M Co. Philippines Inc., one of the country’s leading providers of elevators and escalators.

“Our further push for cost productivity has gained traction as this discipline is shared across all our core businesses and new acquisitions,” said chief finance and information officer Victoria A. Betita.

Cost effectiveness efforts resulted in a stronger profitability without undermining topline momentum, Betita said. In the second quarter alone, sales picked up 21 percent while profitability climbed 54 percent.

“We will continue to see growth in the second half but on a slower pace compared to the earlier part of the year as we move away from our peak months,” Concepcion said.

In November, the appliance maker listed in the local bourse following a P1.949-billion initial public offering.