Concepcion Industrial Corporation, the country’s leading provider of consumer lifestyle and building & industrial solutions, posted a 27 percent drop in net income for the first half of 2022.

In a disclosure to the Philippine Stock Exchange, the firm said this is primarily because of the business challenges in the first quarter such as Covid-related restrictions, supply chain disruptions, higher commodity and logistics costs and unfavorable foreign exchange.

Over-all first half results saw an increase in net sales by 4 percent at P6.7 Billion as compared to the same period last year.

Profit after tax for the second quarter was retained at the same level as last year at P233 million. Headwinds from commodity and logistics costs and FX were offset thru measured price adjustments and cost reduction activities.

Despite the weak business and consumer sentiments resulting from rising inflation, commodity costs and weaking Peso, CIC delivered P3.6 billion of net sales in the second quarter, growing 2 percent against same period last year.

The commercial sales segment performed well due to new orders and the realization of backlog orders as the economy opens up.

While the quarter saw mobility improving significantly, consumer markets remained soft relative to stronger summer seasons in the past.

“Despite the strong headwinds, CIC has managed to remain resilient. We prepared for the current challenges by carefully managing our working capital, rationalizing our cost structure and implementing strategic price increases,” said CIC Chairman and CEO Raul Joseph A. Concepcion.

He added that, “We are confident that the fundamentals for an eventual economic recovery are in place. As such, we continue to make strategic investments in our people, products and services, logistics capabilities and digital infrastructure.”