Panasonic swings back to profitability

LISTED appliance maker Panasonic Manufacturing Philippines Corp. (PMPC) has returned to profitability, having netted P75.9 million in the nine months ending December 2023 and rebounding from the P19.3-million loss booked in 2022.

The turnaround was attributed mainly to an increase in nonoperating income, to P73.2 million from P31.3 million, and a decrease in the cost of sales to P8.6 billion from P9.5 billion, PMPC said in a recent filing.

The reduced cost of sales, the company noted, was due to costefficiency initiatives for raw materials as well as “some product and channel mix.”

Nine-month consolidated sales, meanwhile, dipped by 7.1 percent to P10.1 billion from P10.8 billion on lower export sales of televisions, refrigerators and air-conditioners due to “strong competition versus China.”

Despite the dip in sales, PMPC’s gross profit rose 14.6 percent to P1.5 billion from P1.3 billion, thanks to improvement in the cost of sales ratio.

General and administrative expenses were said to have increased by 9.7 percent to P934 million on to higher salaries and fees.

Selling expenses grew by 1.3 percent to P464.2 million from P458.2 million largely due to higher freight costs which, in turn, increased fuel costs, leading to higher trucking and shipping expenses.

PMPC said its total assets as of end-December 2023 stood at P8.6 billion and its total equity amounted to P4.8 billion.

Accounts receivable, on the other hand, surged to P1.9 billion due to the recognition of insurance claims following a fire incident at the company’s factory in Santa Rosa City, Laguna, last December.

PMPC, a subsidiary of Japan’s Panasonic Holdings Corp., manufactures, imports and distributes electrical appliances bearing the Panasonic brand.

The company’s share price was up 36 centavos, or 7.27 percent, at P5.31 on Friday.