Concepcion Industrial Corporation (CIC), the country's leading provider of consumer lifestyle and industrial solutions, reported that it has doubled its consolidated net income to P186 million in the first quarter of 2024 compared to the same period last year.

In a disclosure to the Philippine Stock Exchange (PSE), the firm said the substantial growth was driven by higher volume, largely attributed to improved retail presence and distribution channels, wider product portfolio and the impact of the prevailing hot weather conditions. 

"We are encouraged with the results of our performance, but we need to remain cautious as we face challenges and opportunities in the coming year,” said CIC Chief Executive Officer Ariel Fermin.

He noted that “the foundation of CIC is strong, and the key now is to transform with customer centricity as our value discipline. This will not only drive growth and profitability but also strengthen our relationships with our valued customers.”

"We are pleased that we have exceeded the commitment for the quarter which is a testament to the hard work and dedication of our people, and the effectiveness of our strategies which have been in motion since 2023,” said CIC Chief Finance and Operating Officer Rajan Komarasu.

CIC achieved first quarter net sales of P3.8 billion, a 33 percent increase relative to the same period last year, with notable growth across business segments. 

Including its associate Concepcion Midea Inc. (CMI), the group reached P5 billion in net sales with growth of 34 percent.

The Consumer Business recorded P2.8 billion in net sales, a 33 percent year-on-year increase. The air conditioning product sales grew by 30 percent, while refrigeration products realized an increase of 60 percent from a consistent monthly sales performance, owing to the launch of new models and improved retail presence.

The Commercial business achieved P981 million in net sales, representing a 31 percent growth compared to the prior year. 

This growth was primarily attributed to increased sales of HVAC equipment, fueled by distribution expansion, and advancements in both air conditioning and elevator projects. Additionally, the growth in aftermarket services also played a role in the overall increase.

Gross profit increased to P1.3 billion, up 31 percent from the corresponding period due to higher sales across all business segments. 

There was an increase in operating expenses, albeit at a slower pace of 24 percent, to support sales growth and accommodate inventory provisions for outdated models and parts.