By James A. Loyola
Concepcion Industrial Corporation, the country’s leading provider of consumer lifestyle and building industrial solutions, reported a 5 percent dip in unaudited net income to P1.4 billion last year.
In a disclosure to the Philippine Stock Exchange, the firm said attributable income dropped 8 percent to P913 million although consolidated sales inched up 2 percent to P14.2 billion.
CIC explained that, “2018 was marked by key headwinds of rising costs due to higher commodity prices and a fluctuating foreign exchange rate and unfavorable weather, particularly in the third quarter.”
Fourth quarter results for 2018 showed positive momentum with the recovery of the consumer appliance market after a weak third quarter. The three-month period showed an 11 percent growth in revenues to P1.9 billion while profits increased 7 percent to P383 million.
“Last year we weathered short-term external challenges. However, things are looking more positive as the last quarter showed signs of a less volatile 2019,” said CIC Chairman Raul Joseph A. Concepcion.
He added, “We are confident that our core business will be back on a growth trajectory this year amidst more favorable market conditions.”
Concepcion also noted that, “We are excited to pursue strategic growth outside our core business as we aim to offer solutions that are innovative and relevant to Filipino families and businesses. Our key focus area for this year is expanding the product and services we will offer to our clients through our new technology subsidiary, Cortex.”