Concepcion Industrial Corp. (CIC), a leading manufacturer of air conditioners, refrigerators and home appliances, reported a net income of P355.4 million in the second quarter of the year, up 15.3 percent year-on-year despite softer demand.
In a disclosure to the stock exchange, CIC said the growth was largely driven by a strong contribution from its associate, Concepcion Midea, Inc. (CMI), and better sales performance from its refrigeration and appliance businesses.
“While Q2 presented headwinds from softer retail demand and margins, we remained agile and focused,” said Rajan Komarasu, CIC chief finance and operating officer. “Strong performance in our refrigeration and appliance lines helped offset challenges in other areas, reaffirming the resilience of our diversified portfolio.”
Consolidated net sales for the second quarter reached P5.2 billion, down 12.5 percent from the same period a year ago. Including unconsolidated sales of CMI, total net sales were P7.5 billion.
Net sales from the consumer segment reached P3.7 billion, a 20 percent decline year-on-year. This was primarily due to weaker demand for air conditioning equipment caused by a shorter and less intense hot season, as well as a shift in consumer preference for lower-priced alternatives.
Despite these challenges, refrigeration product sales grew by 16 percent, driven by strong performance in no-frost and light commercial refrigerators. The appliance category also saw 28 percent growth on the back of solid demand for laundry, kitchen and small household appliances.
For the first half of the year, CIC reported a net income of P534.3 million, up 30 percent versus the same period last year. Consolidated net sales reached P10.1 billion, a 3 percent increase from P9.8 billion a year ago. Including contributions from CMI, total group net sales grew by 10 percent to P14.1 billion.
“Our first-half results underscore the strength of our multi-segment platform,” said CIC chief executive Ariel Fermin.
“As we navigate evolving market dynamics, we continue to sharpen our execution, invest in innovation and build long-term value for our customers and shareholders.”
