Concepcion firm boosts 9-month profit by 36.4%

Leading local airconditioning and refrigeration appliance manufacturer Concepcion Industrial Corp. (CIC) boosted its nine-month net profit attributable to equity holders of parent by 36.4 percent year-on-year to P495 million.

The company said the nine-month results were supported by the favorable economic fundamentals despite the challenges seen in the third quarter arising from the peso depreciation and rising logistics costs, which affected industries across the board.

COL Financial head of research April Lee-Tan said CIC’s results were in line or slightly above market estimates. The nine-month results accounted for 72.5 percent of COL’s full-year forecasts and 74.4 percent of consensus forecasts for the year.

For the third quarter alone, sales were up 15 percent while earnings jumped 20 percent. These were, however, slower than the respective growths of 28.5 percent and 45 percent in the first six months.

“The key drivers of first-time buyers and consumer replacement market growth are peak month drivers and as we approach the leaner months for consumer channels, the growth in airconditioning shifts toward the building and industrial markets with the latter growing at 29 percent against a 2-percent growth in consumer airconditioning and 8 percent in domestic refrigeration,” the company reported.

Net sales for the nine-month period rose by 24 percent year-on-year to P6.9 billion. Gross profit for the period improved by 20 percent to P2.4 billion. Doris C. Dumlao