MANILA, Philippines - Homegrown appliance maker Concepcion Industrial Corp. (CIC) said its earnings and sales rose by a little over a fifth last year behind sustained demand in its air conditioning and refrigeration business.
In a disclosure to the local bourse, CIC said its unaudited 2014 net income grew 23 percent compared to its 2013 audited profits while sales also increased 21 percent year-on-year.
CIC chief executive officer and chairman Raul Joseph Concepcion said last year was marked by strong top line growth and solid margin expansion for its core air conditioning and domestic refrigeration segments.
“2014 was a strong year across all of CIC businesses. The drivers of this positive momentum includes sales from first-time buyers and 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,” Concepcion said.
CIC chief finance and information officer Victoria A. Betita said the company managed to end the year on a strong note despite a few challenges in the second half of 2014 brought about by the peso depreciation and rising logistic cost that affected all industries.
“Our latest acquisition, Concepcion Otis Philippines Inc., was fully integrated starting the second quarter of 2014 which also helped boost the company’s earnings for the year,” Betita said.
CIC ventured into escalators and elevators after acquiring Otis E&M Co. Philippines Inc. in March last year. Otis is one of the country’s leading providers of elevators and escalators.
The appliance manufacturer has now evolved into a leading provider of consumer appliances as well as building and industrial solutions.
“Our focus remains steadfast in further expanding our core business while seeking growth in new markets and customers segments. We have earmarked key investments in company processes, people and our leadership as we head on to solid long-term goals this year and beyond,” Concepcion said.