Concepcion Industrial Corporation Maintains Upward Trajectory Concluding 2023 with Solid Performance

Concepcion Industrial Corporation (CIC), the country's leading provider of consumer lifestyle and building and industrial solutions, ended the year on a high note, reporting unaudited Q4 consolidated earnings of Php 177.9 million, 195% higher than the previous year due to improved margins and strong sales performance.

CIC achieved sustained quarterly growth, reaching PHP 3.8 billion in Q4 net sales, a 9% increase over the same period last year, with significant sales growth in the commercial segment. Including its affiliate, Concepcion Midea, Inc. (CMI), the group's net sales totaled PHP 4.7 billion, bringing its sales growth to 14%.

The commercial business achieved PHP 1.4 billion in net sales, a stunning 33% increase over the previous year. The increase was due to HVAC equipment sales led by distribution expansion initiatives, as well as the early arrival of elevator equipment and strong progress on both air conditioning and elevator projects.

The consumer business generated PHP 2.4 billion in net sales, representing a 1% decrease from the previous year. The decline was caused by decreasing demand for window-room air conditioners and direct-cool refrigerators. This was reduced by the increased use of frost-free refrigerators and laundry products.

Gross profit finished 33% higher than the previous period, at PHP 1.2 billion, expanding faster than the top line.

CIC's strong fourth-quarter performance aided the company's rising trajectory, resulting in a great year-end conclusion. CIC concluded the year with Php 14.7 billion in net sales and Php 667.3 million in consolidated earnings, representing an 11% and 86% increase, respectively. Including CMI, the group's net sales increased by 15% to PHP 18.2 billion.

Raul Joseph Concepcion, Chairman & President, said, “CIC has shown time and again our ability to overcome challenges as our resilient business allows us to adapt quickly and pivot when the situation calls for it. As we reflect on our achievements in 2023, we look ahead with optimism, ready to welcome opportunities and face the challenges of 2024. CIC is well-positioned to capitalize on emerging opportunities, and our commitment to innovation, customer satisfaction, and operational excellence remains firm. We continue to embark on a promising journey, confident in our ability to drive growth and deliver value to our stakeholders.”