Concepcion Industrial Corporation Ended Q12024 with P186 Million in Consolidated Earnings

Concepcion Industrial Corporation (CIC), the country's leading provider of consumer lifestyle and industrial solutions, reported consolidated earnings of P186 million in the first quarter of 2024, more than doubling those from the previous year. The significant gain was driven by increased volume, which was mostly due to stronger retail presence and distribution networks, a broader product portfolio, and the influence of the current hot weather conditions.

Rajan Komarasu, CFOO stated, "We are pleased that we have exceeded the commitment for the quarter which is a testament to the hard work and dedication of our people, and the effectiveness of our strategies which have been in motion since 2023.”

CIC delivered Q1 net sales of P3.8 billion, a 33% increase over the same period last year, with significant growth across business segments. The group's net sales, including its affiliate Concepcion Midea, Inc. (CMI), amounted to P5 billion, up 34%.

The Consumer Business reported net sales of P2.8 billion, up 33% year on year. Sales of air conditioning products increased by 30%, while refrigeration items increased by 60% as a result of steady monthly sales performance, thanks to the introduction of new models and greater retail presence.
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The commercial business generated P981 million in net sales, marking a 31% increase over the previous year. This gain was mostly due to increased HVAC equipment sales, which were supported by distribution expansion and developments in both air conditioning and elevator projects. Additionally, the development of aftermarket services contributed to the overall increase.
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Gross profit climbed to P1.3 billion, up 31% from the previous period, owing to increasing sales in all business sectors. Operating expenses increased by 24%, albeit at a reduced rate, to support sales growth and meet inventory provisions for obsolete models and parts.

​Ariel Fermin, CEO, commented on the achievements of the last quarter and said, "We are encouraged with the results of our performance, but we need to remain cautious as we face challenges and opportunities in the coming year. The foundation of CIC is strong, and the key now is to transform with customer centricity as our value discipline. This will not only drive growth and profitability but also strengthen our relationships with our valued customers.”

Concepcion Industrial Corporation (CIC) is the leading air conditioning and refrigeration company in the Philippines. From a cooling solutions provider, the company expanded its portfolio of products and services designed for the needs of every Filipino home and business.

Founded in 1962 by Jose Concepcion Sr., Concepcion Industries Inc. (CII) was established with the goal of providing comfort to Filipino homes through the most advanced cooling technology available. True to its mission, CII obtained an exclusive license to manufacture and distribute the world-class Carrier Air Conditioning brand in the Philippines.

The company has then evolved into the largest and most experienced provider of home and business solutions in the country. CIC now aims to create environments where Filipinos can work, relax and live their lives to the utmost – to create happy spaces where Filipinos and Filipino businesses can thrive and reach their maximum potential.