25 July 2024 – Concepcion Industrial Corporation (CIC), the country’s leading provider of consumer lifestyle and enterprise solutions, concluded the second quarter (Q2) 2024 with consolidated earnings of Php541 million, marking a twofold increase compared to the previous year. This growth was driven by well-executed sales strategies, enhanced customer engagement, and strong market demand fueled by hot weather conditions.
Rajan Komarasu, Chief Finance & Operating Officer, expressed his satisfaction with the results, stating, “CIC achieved a significant milestone in the second quarter. We have surpassed our pre-pandemic performance and set new record for sales and earnings. The hot weather worked in our favor, allowing us to solidify our market position and demonstrate the effectiveness of our strategies, delivering on our commitments to stakeholders.”
CIC reported Q2 net sales of Php6.0 billion, a 37% increase compared to the same period last year. Including its associate Concepcion Midea, Inc. (CMI), the group reached Php7.7 billion in net sales with a growth of 46%.
The Consumer Business division recorded Php4.6 billion in net sales, a 42% year-on- year increase, driven by growth across all product categories. Air conditioning product sales rose 43% due to increased demand during the hot summer, while refrigeration product sales grew by 44%, fueled by strong demand for light commercial products and no-frost refrigerators. Laundry product sales recovered in the second quarter, posting a 49% increase compared to last year.
The Commercial business achieved sales of Php1.4 billion, marking a 25% growth compared to the previous year. This was primarily due to higher sales of HVAC equipment driven by effective channel and distribution strategies, along with the timely delivery of elevator equipment and project advancements.
Gross profit for the second quarter grew 58% versus last year, reaching Php2 billion, on the account of higher sales across all business segments, favorable factory absorption and procurement savings. Operating expenses increased to support sales growth, partly reduced by recovery from the disposal of obsolete inventories and the collection of bad debts. Nevertheless, operating expenses grew slower than sales, indicating improved productivity.
With the sustained strong performance, CIC generated Php9.8 billion in net sales for the first half of the year, a 36% growth. Including CMI, net sales grew 41% to Php12.7 billion. Consolidated earnings posted Php726.7 million, double the earnings of the same period last year in view of revenue growth and higher margins.
Ariel Fermin, CEO, stated, “This year has been a testament to the principle that ‘opportunity meets preparation’, and together, we have seized that opportunity with outstanding results. We prepared meticulously, focusing on channel execution, innovation, quality, and customer service. We were ready to meet the natural demand forour products. Our dedication to quality and customer service has reinforced our brand’s reputation and solidified our position as an industry leader. Satisfied customers are loyal customers, and their continued trust in our products and services speaks to the hard work and dedication of our entire team.”
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