Concepcion Industrial Corporation, the country’s leading provider of consumer lifestyle and building & industrial solutions, reported a 14 percent decline in net income to P298 million for the first nine months of 2022.
In a disclosure to the Philippine Stock Exchange, the firm said its earnings jumped 370 percent to P34 million in the third quarter of the year as margins from higher volume and increased pricing offset headwinds from higher commodity costs and the weakening Peso during the quarter.
However, profits were lower year-to-date due to weak market and low sell-out coupled with early onset of the rainy season and COVID restrictions in the first quarter.
In addition, higher commodity and logistics costs and unfavorable foreign exchange rate further impacted earnings. These headwinds were partially offset by price increases and cost curtailment actions.
Net sales for the first nine months of 2022 amounted to P9.7 billion, registering 7 percent growth rate compared to last year.
CIC delivered P3.0 billion of net sales in the third quarter, growing 15 percent against the same period last year.
“Amidst concerns over rising inflation, both the consumer and commercial segments posted growth rates of 10 percent and 28 percent, respectively.
Sales growth in the consumer channel was primarily driven by increased pricing, while the commercial channel’s growth was driven by the realization of higher backlog and new orders from the opening of business establishments and easing of lockdown restrictions.
“The business environment remains difficult, but we have made the right investments to weather the storm, and thrive in the recovery that follows,” said CIC Chairman and CEO Raul Joseph A. Concepcion.
He added that, “We remain confident that the fundamentals for an eventual economic recovery are in place. Meanwhile, we continue to build our products, brands, our distribution, and logistics capabilities, while improving our operational execution.”
“We remain committed to our vision of Creating Happy Spaces for Filipinos and are ready once the recovery accelerates in the mid-term,” Concepcion said.