Appliance maker Concepcion Industrial Corp. is spending P11 billion to finance expansion and possible acquisitions over the next few years in line with the target to increase net income and revenues fivefold by 2020.
CIC president Raul Joseph Concepcion said in an interview at the sidelines of the company’s annual stockholders meeting that of the total amount, P1 billion would be for capital expenditures while P10 billion would be earmarked for potential acquisitions.
Concepcion said to achieve the 2020 targets, the company should continue to invest in existing businesses while exploring acquisitions to accelerate growth.
Concepcion said the company was particularly interested in acquiring appliance firms with strong brands and other services and IT firms with synergies with the group’s existing operations.
“We are not afraid to make investments for as long there will be synergies with our existing businesses. We are investing for the future given the overall positive outlook on the economy,” Concepcion said.
“We will grow robustly to five times where we are now in both sales and profit by continuing to focus on core, expanding peripheral offerings and solutions and exploring opportunities for synergistic acquisition,” he said.
Under the company’s five-year plan, CIC expects to achieve a net income of P5 billion and revenues of P50 billion by 2020.
Concepcion Industrial chief finance officer Victoria Betita said this year, the company was poised to beat its target of 15-percent growth in sales and net income.
Betita said preliminary figures showed the company posted a strong profit growth in the second quarter, on increased sales of air-conditioning units during the summer season, resulting in strong first-half performance.
Betita said the company was also expected to sustain the growth momentum in the second half of the year.