24 April 2024 – Concepcion Industrial Corporation (CIC), the country’s leading provider of consumer lifestyle and industrial solutions, ended first quarter (Q1) of 2024 with consolidated earnings of Php186 million, twice as much as the previous year. 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.
Rajan Komarasu, CFOO stated, “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.”
CIC achieved Q1 net sales of Php3.8 billion, a 33% increase relative to the same period last year, with notable growth across business segments. Including its associate Concepcion Midea, Inc. (CMI), the group reached Php5 billion in net sales with growth of 34%.
The Consumer Business recorded Php2.8 billion in net sales, a 33% year-on-year increase. The air conditioning product sales grew by 30%, while refrigeration products realized an increase of 60% from a consistent monthly sales performance, owing to the launch of new models and improved retail presence.
The Commercial business achieved Php981 million in net sales, representing a 31% 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 Php1.3 billion, up 31% 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in operating expenses, albeit at a slower pace of 24%, to support sales growth and accommodate inventory provisions for outdated models and parts.
Ariel Fermin, CEO, commented on the achievements of the last quarter and said, “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. T
. This will not only drive growth and profitability but also strengthen our relationships with our valued customers.”
31 January 2024 – Concepcion Industrial Corporation (CIC), the country’s leading provider of consumer lifestyle and building & industrial solutions concluded the year with a strong finish posting an unaudited Q4 consolidated earnings of Php 177.9 million, 195% higher than last year attributable to better margins and solid sales performance.
CIC delivered consistent quarterly growth, achieving Php 3.8 billion in Q4 net sales, marking a 9% increase relative to the same period last year, with notable sales growth in the Commercial business. Including its associate Concepcion Midea, Inc. (CMI), the group posted Php 4.7 billion in net sales, increasing its sales growth rate to 14%.
The Commercial business generated Php 1.4 billion in net sales, a remarkable 33% growth compared to last year. 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 Php 2.4 billion in net sales, a slight decline of 1% relative to last year. 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.
Gross profit ended 33% higher versus the corresponding period to Php 1.2 billion, growing faster than the top line.
CIC’s strong performance in the fourth quarter contributed to the business’ upward trajectory, concluding the year with a strong finish. CIC ended the year with Php 14.7 billion in net sales and Php 667.3 million in consolidated earnings, achieving 11% and 86% growth, respectively. Including CMI, the group reached 15% growth to Php 18.2 billion net sales.
Raul Joseph Concepcion, Chairman & President, said, “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. As we reflect on our achievements in 2023, we look ahead with optimism, ready to welcome opportunities and face the challenges of 2024. 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 media inquiries, contact:
investorrelations@cic.ph
[28 NOVEMBER 2023, Taguig City] – Concepcion Industrial Corporation (CIC), the Philippines’ leading consumer lifestyle and building & industrial solutions company celebrates its 10th Listing Anniversary with a Bell Ringing Ceremony at the PSE Tower in Taguig City.
Since joining the ranks of publicly listed companies a decade ago, CIC has continuously evolved to provide comprehensive consumer lifestyle and building & industrial solutions beyond air conditioners and refrigerators. Over the years, CIC has expanded its product range, incorporating laundry, kitchen, and small domestic appliances, vertical transport solutions, and HVAC/R parts into its roster. Through joint ventures, CIC added prominent brands like Midea and Otis in 2013. Recently, the modern household and beauty solutions brand, SharkNinja, was added to its portfolio.
Raul Joseph A. Concepcion, Chairman & CEO of Concepcion Industrial Corporation, expressed gratitude, stating, “We are immensely proud and honored to celebrate this significant milestone of our 10th Listing Anniversary. This decade has been a journey filled with achievements, growth, and learning. We owe our success to our stakeholders, whose unwavering trust and support have been the driving force behind our progress. As we step into the future, we are committed to further innovation, sustainability, and growth, and we are excited about the possibilities that lie ahead.”
For over six decades, CIC has been a part of Filipino homes and businesses, consistently earning recognition from Filipino consumers as a trusted brand and partner. This is a testament to the company’s enduring mission to help build better lives for Filipinos through meaningful solutions that they can trust.
CIC has also earned industry recognitions that affirm its commitment to excellence and principles of good corporate governance. It has been recognized by esteemed organizations like Finance Asia as 1st Best Small Cap consecutively in 2015 and 2016 and was ranked 6th in the Philippines for Best Managed Companies, Corporate Governance, and Investor Relations. Additionally, CIC has been awarded the Outstanding Chairman and CEO award by Asia Pacific Enterprise Awards and has earned recognition from the Institute of Corporate Directors (ICD) as a recipient of the Golden Arrow Award for exemplary corporate governance.
Looking ahead, Concepcion Industrial Corporation remains committed to fostering innovation, adapting to change, and prioritizing sustainability. As the company sets its sights on the future, it remains poised to lead in the next decade, maintaining its commitment to corporate excellence and creating solutions that matter to Filipino consumers.
###
For media inquiries or more information, please contact:
Corporate Communications
corpcomm@cic.ph | +63 998 968 3558
25 October 2023 – Concepcion Industrial Corporation (CIC), the country’s leading provider of consumer lifestyle and building & industrial solutions, delivered solid results in Q3 with net sales exceeding pre-pandemic levels. Earnings quadrupled to P139 million compared to the same period last year owing to sustained sales growth performance, better operational efficiency, and lower foreign currency loss.
CIC delivered P3.6 billion in net sales, a notable 22% growth relative to the same period last year. The growth was mainly driven by its air conditioning and elevator and escalator categories. Including its associate Concepcion Midea (CMI), the group posted P4.5 billion in net sales with a growth rate of 24%.
Consumer business generated P2.3 billion in net sales, an increase of 6% year over year. Air conditioning product sales, which represent 46% of the consumer business, grew 19% versus last year. While refrigeration sales were down 8% primarily due to lower demand for direct cool refrigerators, no frost refrigerator sales increased by 25% driven by the introduction of new models as CIC increasingly positions to play in this faster-growing segment. Other appliances continued their growth momentum posting a growth of 27% primarily from laundry product sales.
Commercial business delivered a solid performance with sales at P1.3 billion, posting 63% growth versus last year. The air conditioning business, which represents 72% of the commercial sales, grew 61% while sales in the elevator & escalator business increased by 66% due to higher project deliveries during the quarter.
For the first nine months of the year, CIC delivered P10.9 billion in sales, achieving 12% growth due to sustained performance in the last two quarters. Including CMI, net sales at P13.5 billion grew 16%. Consolidated earnings posted P489.3 million, a 64% increase year over year.
CIC Chairman & CEO, Raul Joseph A. Concepcion, said, “We have delivered promising third-quarter results despite the macroeconomic challenges. This undoubtedly demonstrates the strength of our core business, our brands, and our ability to drive growth through our expanded portfolio, end-to-end customized solutions, and long-term relationships with our customers. Our unwavering optimism in the face of these challenges has not only fueled our growth but also solidified our market leadership. We are committed to navigating the ever-changing economic landscape to provide our customers the best consumer lifestyle and commercial solutions.”
MANILA, October 9, 2023 — Concepcion Industrial Corporation (CIC), the leading home and building & industrial solutions provider in the Philippines, is thrilled to announce a strategic partnership with JS Global APAC Pte Ltd., for the exclusive distribution of “Shark” and “Ninja” branded products in the Philippines. Shark and Ninja are globally recognized brands known for innovative and high-quality home appliance products.
This collaboration marks a significant milestone in the company’s commitment to delivering cutting-edge and high-quality products to the Philippine market.
SharkNinja is renowned for its dedication to reimagining everyday household appliances and creating products that make life easier, more efficient, and more enjoyable.
SharkNinja’s
Concepcion Industrial Corporation Chairman & CEO, Raul Joseph A. Concepcion expressed excitement about the partnership, saying, “We are delighted to partner with JS Global APAC to bring their innovative products to the Philippines. Our commitment to improving the lives of Filipino consumers is perfectly aligned with JS Global APAC’s mission to redefine home appliances that offer real solutions for real life.”
The introduction of SharkNinja products to the Philippine market is expected to revolutionize the way consumers approach home maintenance and cooking. The upcoming product range covers three key areas of daily life – hair styling, kitchen tasks, and home cleaning. With innovative technology and user-friendly design, these products promise to elevate life experiences at home.
Visit the official website: https://sharkninja.com.ph
About Concepcion Industrial Corporation (CIC):
Concepcion Industrial Corporation (CIC) is the leading home, building and industrial solutions provider in the Philippines. With a history spanning over 60 years, CIC has established itself as a trusted name in the industry, dedicated to improving the lives of Filipino consumers through innovative and reliable products.
About SharkNinja:
SharkNinja is a globally recognized brand specializing in innovative home appliances. JS Global Trading HK Limited holds the exclusive legal rights to the Trademarks for the brand names “Shark” and “Ninja” in connection with the licensed products in APAC region. It is a company incorporated in Hong Kong and is a wholly owned subsidiary of JS Global Lifestyle Company Limited, a world-leading small household appliances group operating major brands including Shark and Ninja.
For media inquiries, please contact:
CORPORATE COMMUNICATIONS
corpcomm@cic.ph
Statement from Raul Joseph A. Concepcion,
Chairman of Concepcion Industrial Corporation
September 21, 2023, Thursday
I am pleased to announce a significant development at Concepcion Industrial Corporation (CIC).
After careful consideration and with full confidence, I, Raul Joseph Concepcion, Chairman of CIC, am delighted to inform you of the approval by our Board of Directors of the appointment of Isaias Ariel Fermin, known to many as Ariel, as our new Chief Executive Officer (CEO), effective from January 1, 2024.
This decision marks a pivotal moment for CIC, as it demonstrates our unwavering commitment to strengthening our corporate governance framework. We believe in separating the roles of CEO and Chairman to ensure the highest standards of leadership within our organization. Ariel Fermin is the ideal fit for this role, and we are excited to welcome him to the CIC family.
Ariel Fermin brings a wealth of experience and a distinguished track record of leadership across various industries. Ariel has held senior leadership positions at renowned multinational companies such as Procter & Gamble, Coca-Cola, Unilever, and Nike, as well as local publicly listed companies Max’s Group Inc (MGI), Jollibee Foods and PLDT. His extensive background covers brand management, product development, retail and sales operations, supply chain management, and general management.
As Chairman, I am thrilled to champion broader industry trends and opportunities for CIC, ensuring that we remain at the forefront of our domain. I firmly believe that embracing change is vital for progress, and this strategic move will not only position us to adapt to the evolving world but also set the stage for the next generation of leaders to thrive, innovate, and carry forward the legacy of CIC.
Ariel Fermin, our incoming CEO, has expressed his excitement about joining CIC and leading us into this new chapter. His words, “I am honored to lead CIC during this exciting chapter. I look forward to building ‘happy spaces’ with CIC and creating a significant impact in nurturing the family’s legacy and steering CIC to a very bright future,” resonate deeply with our vision and values.
I have complete faith in Ariel’s capabilities, and I am confident that his leadership will contribute significantly to CIC’s continued success. Together, we will embark on this journey, uphold our commitment to excellence, and take CIC to even greater heights.
Concepcion Industrial Corporation (CIC), the largest and most established provider of home and building & industrial solutions in the Philippines, expressed its full support of the Department of Energy and Natural Resources’ efforts to advance the Extended Producer Responsibility Act (EPR ACT), in line with its efforts to contribute to the development of a robust, eco-friendly manufacturing sector that prioritizes resource conservation and plastic waste reduction.
Under the EPR Act, companies take full responsibility for the plastic packaging they use throughout the lifecycle of their products. By holding companies accountable for the environmental impact of their products, the EPR Act fosters a circular economy and significantly reduces waste generation, landfill usage, and carbon emissions.
As a pioneering manufacturing company in the country, CIC is dedicated to integrating sustainable practices across its operations, from product design and manufacturing to distribution and end-of-life management. To support the company’s efforts to responsibly offset its plastic footprint, CIC partnered with PCX to create a more strategic approach to managing the company’s plastic footprint in compliance with global industry best practices. CIC leverages PCX’s expertise and resources to support the development of effective waste management systems in line with the EPR framework. All three of CIC’s operating subsidiaries that fall within the scope of EPR Act, namely, Concepcion-Carrier Airconditioning Company (“CCAC”), Concepcion Durables Inc. (“CDI”), and Concepcion Midea, Inc. (“CMIP”) have already collectively registered through this partnership between PCX and CIC. By 2028, the EPR Act will require companies to take responsibility for 80% of their post-consumer plastic packaging footprint. This year, the requirement is only 20%, but CIC aims to go beyond and take responsibility for 100% as early as the first year of compliance.
“We firmly believe that the EPR Act is a transformative step towards a greener, more sustainable future. Our commitment to environmental stewardship and sustainability aligns seamlessly with the principles and objectives of the plastic responsibility movement. We recognize the urgency of addressing the environmental crisis we face today, and the EPR Act presents a clear path forward. By embracing extended producer responsibility, our industry can drive innovation, reduce waste, and protect our planet for future generations.
Caring for people and the planet is one of our company’s core values, and this inspires us to channel our efforts into meaningful activities that positively impact the environment and the communities we touch. Our partnership with PCX not only brings us one step closer to achieving our sustainability goals but more importantly, it enables us to become part of the global solution to reduce plastic pollution,” said Concepcion Industrial Corporation Chairman and CEO, Raul Joseph A. Concepcion.
Sustainability has always been a fundamental principle in CIC’s business strategy as it actively seeks innovative solutions that help reduce its carbon footprint. In addition to the manufacturing and distribution of energy-efficient products, efficient waste management practices, CIC since 2018 has also been taking part in the global movement for environmental sustainability with the installation of 1,053 solar panels at its air conditioning manufacturing facility in Laguna. The plant harvests over 1,500 kilowatt hours per day from the system, contributing 18% of its total electricity usage and generating 14 million in savings since commissioning.
Committed to sustainable development, CIC strives to balance economic growth with environmental stewardship, focusing on innovation, efficiency, and responsible business practices.
PCX supports companies, institutions, and individuals to responsibly clean up their plastic footprints, partnering with communities in some of the most polluted areas in the world, empowering them to clean up plastic waste, while enabling socio-economic benefits.
The contract signing between Concepcion Industrial Corporation and PCX was held at the DENR Office in Quezon City on July 18, 2023.
For media inquiries, please contact:
Corporate Communications
corpcomm@cic.ph
27 July 2023 – Concepcion Industrial Corporation (CIC), the country’s leading provider of consumer lifestyle and building & industrial solutions, realized a first half consolidated net income of P350.3 million, 33% better against the comparable period last year in view of 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 1H23 net sales, an 8% growth relative to the same period last year on the back of the 18% and 112% 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%. The strong demand for window room air conditioner and laundry products led to a 3% 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%, posted a 23% 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% 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% higher versus the corresponding period to P2.3 billion, with margin held at 32% level.
CIC’s unconsolidated associate, CMI, posted strong sales across all product lines at P1.8 billion, 32% higher compared to first half of 2022. 1H23 net income was P54.8 million, reversing the loss last year of P98.4 million.
For the second quarter alone, net sales jumped 20% over the prior year quarter to P4.4 billion. Gross profit went up by 7% to P1.3 billion. Net income ended 10% higher to P257.1 million.
Quarter-on-quarter, net sales notably increased by 51%, as sales volume improved sequentially amid the summer season while 1Q performance was challenged by rising inflation and shift in product mix and logistical challenges.
CIC Chairman & CEO, Raul Joseph A. Concepcion, said, “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. 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.”
FOR MEDIA INQUIRIES, CONTACT:
investorrelations@cic.ph
Concepcion Industrial Corporation
31 January 2023 – The country’s leading provider of consumer lifestyle and building & industrial solutions, Concepcion Industrial Corporation (PSE/Bloomberg: CIC/CIC.PM) released today its financial and business updates covering unaudited Q4 and full year results.
CIC Q4 earnings doubled at Php 60 Million, against the same period last year. This is mainly driven by 8% sales growth or Php 3.5 Billion net sales for the quarter and FX 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% decline in the Consumer business due to weaker demand resulting from rising inflation.
CIC delivered unaudited full year net sales growth of 8% to Php13.2 Billion and earnings of P358M, a decline of 5% versus last year. Strong Q4 results were not enough to recover the weak sell-out in Q1 due to Omicron-related restrictions, coupled with higher commodity and logistics costs, and unfavorable FX due to weak Peso performance in most part of the year.
Raul Joseph A. Concepcion, Chairman and CEO, said: “We felt the enduring effect of the pandemic and the economic impact to supply and demand in 2022. However, 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.”
# # # # #
FOR MEDIA INQUIRIES, CONTACT:
Atty. Omar Taccad
Concepcion Industrial Corporationinvestorrelations@cic.ph
