Appliance maker Concepcion Industrial Corp. said it expects net income and sales to grow 15 percent each this year despite the weak second-quarter performance.
CIC chairman and president Raul Joseph Concepcion said in an interview at the sidelines of the company’s annual stockholders meeting the second-quarter figures were weak compared to a year ago because of cooler weather and foreign exchange movement.
Concepcion, however, said he expected the company’s performance to improve in the second half.
“Second quarter is where we are tempering our projections to 5 to 10 percent because of a lot of uncertainties, including political, foreign exchange and cost increases. But for the full year, we are affirming our guidance of 15 percent for top line and bottom line,” Concepcion said.
The company targets to sell 1.2 million units of appliances mostly refrigerators, ovens, freezers, washing machines and air-conditioning units this year.
Concepcion said the company was also on track with its target to grow sales and profits five times from 2013 to 2020.
Concepcion said to achieve the target, the company was looking for acquisitions as it aimed to become the leading appliance maker and building and industrial solutions provider in the country.
He said the acquisitions could take place in 2019 to 2020.
CIC will spend up to P500 million over the next three years to double refrigerator sales to 600,000 units annually from the current 300,000 and increase by 20 percent the production of air-conditioning units from the current 350,000 a year.