CONCEPCION Industrial Corp. (CIC) posted a 14% growth in its attributable profit during the second quarter of 2018, fueled by a double-digit increase in sales of its products.
In a regulatory filing, the listed maker of air-conditioners and refrigerators reported a net income attributable to the parent of P402 million, versus the P352 million it booked in the same period a year ago. Net sales likewise jumped 14% to P4.62 billion for the quarter.
“We are pleased with the strong results coming out of the second quarter of 2018 as our team focused on delivering results based on cost reductions, precise strategic execution, and clear messaging across the organization in the midst of fluctuating exchange rates and high commodity prices,” CIC Chairman and Chief Executive Officer Raul Joseph A. Concepcion.
This brought the company’s six-month attributable profit to P566 million, relatively unchanged from the P570 million it generated in the first half of 2017. Net sales meanwhile went up by seven percent to P7.69 billion.
The company has been implementing initiatives to reduce its costs in the face of challenges in foreign exchange and commodity prices. CIC expects headwinds for the rest of the year which may affect profitability, but is confident it will be able to adapt in the short term.
CIC has recently formed a unit called Cortex, which will explore opportunities in technology and business model innovations. This includes manufacturing smart appliances that can monitor energy consumption to alert owners of their usage.
“The next six to twelve months are going to be exciting for CIC as we launch new products and services particularly in internet-of-things. These will be our initial foray into offering practical smart appliances and solutions to Filipino Consumers,” Mr. Concepcion said.
Shares in CIC were unchanged at P50 apiece at the Philippine Stock Exchange on Thursday. — Arra B. Francia