Bigger margins and higher sales have led to a surge in the 2023 net earnings of Concepcion Industrial Corporation (CIC), the country’s leading provider of consumer lifestyle, building and industrial solutions.

In a disclosure to the Philippine Stock Exchange (PSE), the firm said its strong performance in the fourth quarter contributed to the business’ upward trajectory, concluding the year with a strong finish. 

CIC ended 2023 with P14.7 billion in net sales and P667.3 million in consolidated earnings, achieving 11 percent and 86 percent growth, respectively. Including its associate Concepcion Midea Inc. (CMI), the group reached 15 percent growth to P18.2 billion net sales.  

“CIC has shown time and again our ability to overcome challenges as our resilient business allows us to adapt quickly and pivot when the situation calls for it,” said CIC Chairman and President Raul Joseph Concepcion.

He noted that, “as we reflect on our achievements in 2023, we look ahead with optimism, ready to welcome opportunities and face the challenges of 2024.”

Concepcion added that, “CIC is well- positioned to capitalize on emerging opportunities, and our commitment to innovation, customer satisfaction, and operational excellence remains firm. We continue to embark on a promising journey, confident in our ability to drive growth and deliver value to our stakeholders.”

For the fourth quarter of 2023, CIC almost tripled its consolidated earnings to P177.9 million, 195 percent higher than last year attributable to better margins and solid sales performance.

CIC delivered consistent quarterly growth, achieving P3.8 billion in fourth quarter net sales, marking a nine percent increase relative to the same period last year, with notable sales growth in the commercial business.

Including CMI, the group posted P4.7 billion in net sales, increasing its sales growth rate to 14 percent in the fourth quarter of 2023.

The commercial business generated P1.4 billion in net sales, a remarkable 33 percent growth compared to the fourth quarter of 2022. 

The increase was attributable to HVAC equipment sales driven by distribution expansion efforts as well as the timely arrival of elevator equipment and significant progress in both air conditioning and elevator projects.

The consumer business contributed P2.4 billion in net sales, a slight decline of one percent relative to 2022. The decrease was due to lower demand for window room air conditioners and direct cool refrigerators. This was mitigated by growth in no frost refrigerators and laundry products.