Concepcion Industrial Corp. reported a sharp decline in attributable net income for the second quarter, falling 89.4% to P37.7 million from P355.4 million a year earlier.
During the April‑to‑June period, overall net income dropped 75% to P123.9 million, while net sales slipped 1% to P5.1 billion.
When the results of associate Concepcion Midea, Inc. are included, combined net sales rose 4% to P7.8 billion.
The company attributed the weaker performance to higher energy, import and raw‑material costs, depreciation of the Philippine peso, and reduced consumer confidence amid the ongoing Middle East conflict.
These conditions curtailed retail demand, increased freight and manufacturing expenses, and led to lower production volumes and under‑utilized factory capacity.
Growth in commercial air‑conditioning projects, aftermarket parts and services, and e‑commerce appliance sales helped offset some of the headwinds.
The consumer segment recorded net sales of P3.4 billion, down 6% year over year, reflecting weaker sales of air‑conditioning and refrigeration products, partially balanced by stronger e‑commerce sales of other appliances.
The commercial segment posted net sales of P1.7 billion, up 9% from the prior year, driven by higher commercial air‑conditioning projects and aftermarket services, while lower elevator equipment sales limited the increase.
Revenue is generated through subsidiaries that market and service air conditioners, refrigeration units, laundry and kitchen appliances, as well as elevator and escalator products, complemented by an appliance repair and maintenance platform.
Following the earnings release, CIC shares fell 8.25% to P11.56 each on the stock exchange.
