Concepcion Industrial nets P980M

The country’s leading consumer and industrial solutions manufacturer Concepcion Industrial Corp. (CIC) grew its net profit last year by 8 percent to P980 million as a double-digit sales volume growth made up for some margin pressure.

Based on a disclosure to the Philippine Stock Exchange on Monday, CIC posted a 15-percent growth in sales for the last quarter of 2017 alone. Fourth quarter net profit posted a modest year-on-year growth of 3 percent, attributed to the impact of higher commodity prices and fluctuating foreign exchange rates, mitigated by efforts to increase operational efficiencies.

For the full year, CIC reported a 12-percent increase in sales to P13.9 billion.

CIC chair and chief executive officer Raul Joseph Concepcion said: “Our performance reflects continued strong demand brought about by consistently strong economic fundamentals, rising income levels and strong private sector confidence in the economy. CIC continues to invest in capabilities in its production facilities to serve growing consumer demand as well as improving efficient processes within the organization. These are key foundations for further expansion into the future. “

“CIC continues to expand into more consumer appliances categories with over one million appliances sold in 2017. In our commercial segments, we continue to grow our order book in support of new development across the country,” he said.

This 2018, key priorities will be to grow faster than the market, preserve value, maintain business fundamentals, and fast-track investment in growth areas, Concepcion said.

Victoria Betita, CIC chief finance officer, said the 8-percent increase in profitability last year was attained “in an environment of margin pressure.”

“The situation of rising commodity prices and currencies is a short-term challenge we will have to overcome through solid operating performance and execution,” she said.