Concepcion Industrial’s bottom line rises 8%

THE SALE of over a million consumer appliances in 2017 boosted Concepcion Industrial Corp. (CIC)’s bottom line, the company said on Monday.

In a statement, the listed firm said profit after tax and minority interest ( PATAMI) rose 8% year on year to P980 million in 2017. This follows a 12% increase in sales to P13.9 billion during the same period.

For the October to December period, CIC said it saw a faster top-line growth at 15%, while PATAMI rose by 3%.

The company attributed its fourth quarter performance to its focus on costs and operational efficiencies, which offset the impact of higher commodity prices and fluctuating foreign exchange rates.

“Our performance reflects continued strong demand brought about by consistently strong economic fundamentals, rising income levels and strong private sector confidence in the economy,” CIC Chairman and Chief Executive Officer Raul Joseph A. Concepcion said in a statement.

CIC supplies air-conditioners, air-conditioning solutions, and refrigerators under the brands Carrier, Toshiba, Condura, and Kelvinator, wherein Mr. Concepcion said the company was able to sell more than a million units in a span of a year.

“CIC continues to invest in capabilities in its production facilities to serve growing consumer demand as well as improving efficient processes within the organization... In our commercial segments, we continue to grow our order book in support of new development across the country,” Mr. Concepcion added.

Meanwhile, CIC Chief Finance Officer Victoria A. Betita said that the company will continue to face the risk of rising commodity prices and foreign exchange rates.

“The situation of rising commodity prices and currencies is a short-term challenge we will have to overcome through solid operating performance and execution,” Ms. Betita said.

Incorporated in 1997, CIC serves as a holding firm for its four subsidiaries, namely Concepcion-Carrier Air Conditioning Company, Concepcion Durables, Inc., Concepcion Otis Philippines, Inc., and Conception Business Services, Inc., as well as its affiliate, Concepcion Midea, Inc. —