Profits surge for Panasonic’s Philippine unit

THE LOCAL unit of Japanese home appliances maker Panasonic Corp. (PC) reported its attributable net income more than doubled in its fiscal year ending March 2017, on strong sales of consumer appliances.

In a regulatory filing, Panasonic Manufacturing Philippines Corp. ( PMPC) said its net income attributable to equity holders of the parent company jumped 110% to P534.33 million as of end March, from P254.1 million during the same period a year ago.

Net sales went up 22% to P9.97 billion for the year ending March, from P8.1 billion a year ago.

“Local and imported appliances are making good in the market with the company’s inverter models and sell out activities... It is very encouraging to note that the sales of all locally produced consumer appliances recorded double digit growth this year,” the company said.

PMPC noted a 134% improvement in the sale of refrigerators, 114% in freezers, 123% in window-type air-conditioners, 129% in washing machines, as well as 110% in electric fans.

Selling expenses inched up 37.8% to P1.04 billion, primarily due to freight cost and advertising, as well as sales promotions and warranty costs.

For fiscal year 2016, PMPC spent P172 million in capital expenditures to upgrade its factory facilities, machinery, and equipment to enhance productivity.

The company imports all of its raw material, merchandise, machinery, and equipment from Panasonic Japan and its affiliates.

PMPC operates plants in Taytay, Rizal and Sta. Rosa, Laguna, alongside three regional branches located in Pampanga, Cebu, and Davao. It also owns a 40% stake in Precision Electronics Realty Corp., the leasor of the land where its manufacturing facilities are located.

Shares in PMPC fell by 21 centavos or 2.36% on Tuesday to close at P8.69 apiece.