While it leads the air-conditioning and refrigerator market, Concepcion Industrial Corporation is seeking to increase its revenue share and market share of its business-to-business (B2B) and other residential appliances units.

In an interview, CIC Chairman Raul Joseph A. Concepcion said increasing focus on the B2B and non-refrigerant businesses will allow them to reduce dependence on the household aircon and refrigerators/freezers business, which is cyclical and weather-dependent.

According to CIC Chief Executive Officer Isias Ariel P. Fermin, “We want to de-seasonalize the business because there’s a lot of dependency (on the weather) and it doesn’t have to be that way. So what we have done is to rebuild the B2B part of the business…

“What we see to be propelling our (B2B) businesses would be the move towards hospitality, tourism, wellness... we see that and we ride that wave as well," he added.

He also noted the ongoing renovations of malls and stores, which are now being ramped up by the property and business sectors after being held back during the pandemic.

As a building solutions provider, CIC not only designs and installs large-scale air-conditioning systems but also provides other necessities such as elevators and escalators which is has been installing in malls, integrated casino resorts, and airports.

Concepcion also cited the growth in the food franchising business as a non-cyclical market for their products, as each branch put up will need chest freezers and cooking devices, which CIC also manufactures.

“The beauty is being a much more diversified company, we’re no longer so much dependent on the weather. We have basically expanded and looked at our total markets, and we participate in a growing market,” he added.

Fermin said that, “If you have to build a restaurant, you will have to build that through summer and through rain because the goal is to increase the operating base. If you have to build a hotel, same thing. So, the more we build into B2B, the better for us.”

However, air-conditioners and refrigerators still account for a large part of the firm’s business and Fermin said revenues this year may not be as strong as in 2024 which was much warmer due to the El Niño phenomenon which boosted sales.

Fermin said that sales started to kick in in April this year but, in 2024, it was already rising in March because of the heat, noting that, “What we’re seeing is that it is not as strong as last year, which is a fair expectation, but still stronger than 2023.”

But, even with the cooler temperatures this year, he said they will continue to outperform the market and post higher sales growth compared to the industry average.