Durable goods manufacturer Concepcion Industrial Corp. (CIC) grew its first semester net profit by 6.5 percent year-on-year to P368.52 million due to the strong performance of its airconditioning business during the summer.
For the second quarter alone, net profit rose by 14.1 percent year-on-year to P248.47 million, the company reported to the Philippine Stock Exchange on Monday.
These profit levels refer to earnings attributable to equity holders of the parent company and excludes minority interest.
Annualized return on average equity stood at 27.2 percent, compared to 32 percent from a year ago.
CIC’s total net sales and services for the six months ending June grew by 11.2 percent year-on-year to P5.4 billion due to stronger performance from both consumer and commercial airconditioning businesses in the second quarter.
For the second quarter alone, consolidated net sales increased by 18.8 percent year-on-year to P3.1 billion, attributable to the intense summer peak season alongside a strong quarter from the building and industrial solutions unit.
The residential refrigerator subsidiary continued to grow its revenues while focusing on expanding profitability. New businesses, on the other hand, were seen gaining momentum in their respective markets.
The company operates principally through its two subsidiaries, Concepcion-Carrier Air Conditioning Co. (CCAC) and Concepcion Durables Inc. (CDI).
Net sales of CCAC, largely in the airconditioning segment, amounted to P3.8 billion in the first semester, up 8.9 percent over the same period last year. The consumer segment grew by 3 percent in the period despite an overall slowdown in the retail airconditioning market in the first quarter, the company reported.
The building and industrial solutions segment grew by 34 percent, supported by a growing commercial backlog. Doris Dumlao-Abadilla