Concepcion Industrial Corporation (CIC), the country’s leading provider of consumer lifestyle and building & industrial solutions, realized a 33 percent growth in first half consolidated net income to P350.3 million. In a disclosure to the Philippine Stock Exchange, the firm said the higher earnings compared to the same period last year is due to stronger sales volume in the second quarter, favorable impact of foreign exchange rates and income contribution from its associate, Concepcion Midea Inc. (CMI). CIC sustained its topline growth trajectory, generating P7.2 billion in net sales for the first half of 2023, an 8 percent growth relative to the same period last year. This came on the back of the 18 percent and 112 percent increase in its air conditioning business and other appliance categories, particularly laundry products, respectively. This was however, offset by the decline in the elevator equipment and refrigerator businesses. The Consumer segment accounted for the largest proportion of sales at 74 percent. The strong demand for window room air conditioner and laundry products led to 3 percent year-on-year sales growth to P5.3 billion in the first half of the year. The growth was, however, partly offset by lower demand for refrigerators. Commercial Business, which represents the remaining 26 percent, posted a 23 percent increase in net sales to P1.9 billion in view of higher project deliveries in VRF and commercial systems. The Aftermarket business for both air conditioner and elevator businesses delivered 23 percent year-on- year growth. This was offset in part by lower elevator equipment sales due to a higher base coming from a large project last year. Gross profit ended 4 percenthigher versus the corresponding period to P2.3 billion, with margin held at 32 percent level. CIC’s unconsolidated associate, CMI, posted strong sales across all product lines at P1.8 billion, 32 percent higher compared to first half of 2022. First half 2023 net income was P54.8 million, reversing the loss last year of P98.4 million. For the second quarter alone, net sales jumped 20 percent over the prior year quarter to P4.4 billion. Gross profit went up by 7 percent to P1.3 billion. Net income ended 10 percent higher to P257.1 million. Quarter-on-quarter, net sales notably increased by 51 percent, as sales volume improved sequentially amid the summer season while first quareter performance was challenged by rising inflation and shift in product mix and logistical challenges. “Our second quarter performance demonstrated the strength of our core business and our ability to drive growth through our expanded portfolio, end-to-end customized solutions, and long-term relationships with our customers,” said CIC Chairman and CEO Raul Joseph A. Concepcion. He added that, “We will continue to focus on these fundamentals, continue to generate operating leverage and explore business opportunities to complement our strategy that would reinforce our position as the top consumer lifestyle and building and industrial solutions provider in the country.”