Aircon maker posts 23% profit growth

MANILA, Philippines–Air-conditioning, refrigerator and freezer manufacturer Concepcion Industrial Corp. grew its net profit last year by 23 percent to P628 million on the back of higher sales and margins.

Net sales increased by 21 percent to around P9.2 billion from the 2013 level, based on unaudited figures disclosed to the Philippine Stock Exchange on Monday.

CIC chair and CEO Raul Joseph Concepcion said in a press statement: “2014 was a strong year across all of CIC businesses.  The year was marked by strong top-line growth and solid margin expansion for core air conditioning and domestic refrigeration segments.”

“The drivers of this positive momentum include sales from first-time buyers and the replacement market with increasing popularity of inverter technology; continued rise in commercial projects; and improving profitability of the domestic refrigeration business as cost reductions and investments in high-margin products have gained traction.”

Victoria Betita, CIC chief finance and information officer, said the company’s profitability remained strong despite the challenges in the second half of 2014 brought about by the peso’s depreciation and rising logistic costs which affected all industries.

“Our latest acquisition, Concepcion Otis Philippines Inc., was fully integrated starting second quarter 2014, which also helped boost the company’s earnings for the year,” she said.

CIC broke into the elevator and escalator business last year with the acquisition of a majority stake in Otis E&M Co. Philippines, coming in as joint venture partner of American multinational conglomerate United Technologies Corp.

On CIC’s goals for 2015, Concepcion said: “Our focus remains steadfast in further expanding our core business while seeking growth in new markets and customer segments.”

“We have earmarked key investments in company processes, people and our leadership as we head on to solid longer-term goals this year and beyond,” he said.–Doris C. Dumlao