Concepcion Industrial exceeds sales, profit guidance for 2016

CONCEPCION Industrial Corp. (CIC) exceeded its sales and profit guidance for last year, following a double- digit growth across its businesses on the back of cost reduction and efficiency gains and low commodity prices.

In a statement on Wednesday, the consumer and industrial solutions provider reported a 34% year-onyear increase in profit after tax after minority interest (PATAMI) following a 17% improvement in sales.

CIC benefitted from margin expansion, cost reduction and efficiency gains as well as low commodity prices that allowed for a continued investment in long-term capabilities.

The listed company had targeted to sustain a 15% increase in sales from the P10.59 billion booked for 2015. Accordingly, it projected a 25% surge in PATAMI from the P667.47 million posted in the previous year, when the lack of non-recurring income partly offset the record sales.

CIC has yet to disclose its financial statements for the whole of 2016. At the rates given, net income attributable to the parent and sales should have grown to P894.4 million and P12.40 billion, respectively.

“2016 was a milestone year for CIC in many respects as we continue to be on track in meeting our objectives not only financially but organizationally,” Chairman and Chief Executive Officer Raul Joseph A. Concepcion noted in the statement.

“We sold over 1 million units reinforcing our resolve to grow our consumer appliance business,” the executive added. “The building and industrial segment showed great potential as we saw continuous increase in pipeline and orders.”

Mr. Concepcion had indicated that CIC would likely exceed its guidance even before the third quarter of 2016 ended, projecting a 20% improvement for sales and 30% for PATAMI during an interview in mid-September.

The company registered a 43% year-on-year increase in PATAMI to P689.8 million from P482.2 million in the first nine months of 2016, following an almost 20% jump in operating revenue to P9.3 billion from P7.78 billion.

CIC has expressed willingness to spend as much as P10 billion to acquire related businesses over the next five years and invest P150 million to P200 million annually to expand organically, as part of efforts to increase its earnings to P50 billion by 2020.

The company intends to expand its product line to include cooking appliances and fire security and building management systems, among others. It also continues to transition to “green” technology products and solutions.

Shares in CIC closed P2.50 or 4.39% higher at P59.50 apiece on the Philippine Stock Exchange on Wednesday. —