Concepcion Industrial Corporation (CIC), the country’s leading provider of consumer lifestyle and building & industrial solutions, reported a 5 percent decline in net income to P358 million for 2022 despite a strong fourth quarter performance.
In a disclosure to the Philippine Stock Exchange, CIC said its fourth quarter 2022 earnings doubled to P60 Million against the same period in 2021.
This is mainly driven by 8 percent sales growth to P3.5 billion net sales for the fourth quarter as well as foreign exchange recovery from a stronger Peso.
The sales growth is attributed to a stronger demand in the Commercial and Aftermarket businesses, which was partly offset by a 1 percent decline in the Consumer business due to weaker demand resulting from rising inflation.
CIC delivered unaudited full year net sales growth of 8 percent to P13.2 billion in 2022 noting that strong fourth results were not enough to recover the weak sell-out in the first quarter.
First quarter sales were weighed down due to Omicron-related restrictions, coupled with higher commodity and logistics costs and unfavorable foreign exchange due to weak Peso performance in most part of the year.
“We felt the enduring effect of the pandemic and the economic impact to supply and demand in 2022,” said CIC Chairman and CEO Raul Joseph A. Concepcion.
He noted though that, “We have continuously made refinements in our processes throughout the course of these challenges, with the utmost goal of protecting the long-term prospects of the business.”
“We remain optimistic into the future and we are constantly preparing the organization to be well-positioned to seize the opportunities as they present themselves,” said Concepcion.