CIC Reports 5% Drop in 2018 Net Income
Concepcion Industrial Corp. (PSE: CIC), the country’s leading provider of consumer lifestyle and building industrial solutions, has released its financial and business updates highlighting unaudited 2018 results.
Fourth quarter results for 2018 showed positive momentum with the recovery of the consumer appliance market after a weak third quarter. The three-month period showed 11% growth in revenues at PhP3.9 billion and profit after tax (PAT) increasing by 7% to PhP383 million.
For full year 2018, CIC ended at PhP 14.2 billion in consolidated sales, a 2% increase from 2017 numbers. Net income was at PhP1.4 billion with PATAMI (profit after tax after minority interest) at PhP913 million, a 5% and 8% decline, respectively. 2018 was marked by key headwinds of rising costs due to higher commodity prices and a fluctuating FX rate and unfavorable weather, particularly in Q3.
“Last year, we weathered short-term external challenges. However, things are looking more positive as the last quarter showed signs of a less volatile 2019. We are confident that our core business will be back on a growth trajectory this year amidst more favorable market conditions,” said Raul Joseph A. Concepcion, Chairman and CEO. “We are excited to pursue strategic growth outside our core business as we aim to offer solutions that are innovative and relevant to Filipino families and businesses. Our key focus area for this year is expanding the product and services we will offer to our clients through our new technology subsidiary, Cortex.”
CIC, through its subsidiary Cortex, launched their newest IoT (internet of things) device in November 2018. Buddee is a smart plug introduced to the market and positioned as CIC’s entry into the home management system with residential air-conditioning as a starting point. A pioneering product in the country to remotely control power, usage and energy consumption, Buddee can be used with any brand of window air-conditioner and can now be purchased online via Lazada.com.
Last November 28, 2018, CIC announced, through Cortex, the majority acquisition of Teko Solutions Asia Inc., a tech start-up that utilizes a proprietary platform for real-time access to service and repairs for home appliances such as air-conditioners, refrigerators, washing machines and water heaters, using self-employed, qualified and screened entrepreneur technicians—a first in the Philippines. The Teko platform handles all interaction between the consumer and technician, giving the consumer a seamless and hassle-free way of maintaining their appliances.