Concepcion Industries allots P500 M for 3-year expansion

MANILA, Philippines -  Concepcion Industrial Corp. (CIC), the listed provider of air conditioning solutions and refrigerators owned by the Concepcion family, is investing at least P500 million within the next three years to expand its manufacturing capacity.

In a briefing following the company’s annual stockholders meeting yesterday, CIC chief executive officer Raul Concepcion said the budget will be used to produce more air-conditioning units and refrigerators.

 The company plans to double the production of its refrigerator units to 600,000.

Of the P500 million, P100 million will be used to beef up CIC’s manufacturing capacity for air-conditioning units by 20 percent to 350,000 units.

Concepcion said the company may also acquire other brands and companies available in the market as part of a strategy to further grow its business.

 He said the company is still studying opportunities for acquisitions of existing players in the market.

CIC expects to hit its income growth forecast of 15 percent this year.

 “For our 2017 top-line and bottom-line, we’re affirming a 15 percent growth,” Concepcion said.

He saqid however, that growth would likely be tempered in the second quarter compared to the first quarter because the summer weather was not as warm as expected.

Nevertheless, he said overall consumer spending remains very strong.

 In the first quarter of the year, CIC’s net income grew 19.3 percent to P218.5 million as sales rose 15 percent to P3.1 billion.

He attributed CIC’s performance to positive economic fundamentals such as rising income levels and strong private sector confidence in the local economy.

 By 2020, CIC expects earnings and revenues hitting P5 billion and P50 billion, respectively.

The company also aims to be the number one provider of consumer appliance lifestyle and building and industrial solutions. It likewise intends to be the best after sales provider.