Concepcion Industrial Corporation (CIC), a leading force in the Philippine consumer lifestyle and enterprise solutions market, has announced a strong start to the fiscal year with a remarkable 55% increase in consolidated earnings, reaching Php 287.4 million for the first quarter. This significant growth underscores CIC’s ability to thrive in the current market landscape and was primarily driven by robust sales performance, effective cost management, and improved equity earnings from its associate company, Concepcion Midea Inc. (CMI).
CIC’s consolidated net sales for the quarter reached Php 4.8 billion, a substantial 27% increase compared to the same period in the previous year. Including the contributions from CMI, the total sales for the group saw an impressive 30% rise, amounting to Php 6.5 billion.
Rajan Komarasu, Chief Finance & Operating Officer of CIC, commented on the results, stating, “This significant growth demonstrates our underlying resilience and our capacity to effectively capitalize on available market opportunities, even when considering typical seasonal fluctuations in consumer demand. Our strong topline performance was effectively managed alongside disciplined cost controls, resulting in operating expenses growing at a slower pace than our sales revenue. Our ongoing focus remains on enhancing operational productivity and achieving sustainable growth in our earnings.”
The consumer segment of CIC’s business demonstrated strong momentum, generating Php 3.5 billion in sales, reflecting a 23% growth across its diverse range of product offerings. This positive performance was attributed to a combination of factors, including an expanded store presence, the successful implementation of targeted sales initiatives, and the offering of competitively priced products.
Meanwhile, the commercial segment also delivered impressive results, with sales reaching Php 1.3 billion, representing a significant 38% increase year-over-year. This growth was primarily supported by strong demand for the company’s HVAC (heating, ventilation, and air conditioning) equipment, in addition to the continued growth in its elevator and escalator installation and service divisions.
Ariel Fermin, Chief Executive Officer of CIC, emphasized the strategic importance of these results, stating, “The performance we’ve seen this quarter reaffirms the effectiveness of our strategic approach in successfully navigating an increasingly dynamic and competitive market environment. By strategically leveraging our strong and diverse product portfolio, focusing on operational efficiencies, and maintaining a strong market position, we are committed to fostering continuous innovation, ensuring operational resilience, and further solidifying our leadership in the market, all while consistently striving to deliver greater value and superior service to our valued customers.”
