Concepcion Industrial Corp. (CIC) reported a 14 percent drop in its nine-month earnings to P298 million.
The provider of consumer lifestyle and building and industrial solutions attributed the profit to weak market and low sell-out coupled with early onset of the rainy season and COVID restrictions in the first quarter.
Higher commodity and logistics costs and unfavorable foreign exchange further impacted its earnings during the period.
Price increases and cost curtailment actions, however, were able to partially offset the headwinds, CIC said
Net sales rose seven percent to P9.7 billion during the first three quarters.
For the third quarter alone, net sales jumped 15 percent to P13 billion on the back of double digit growth in both the consumer and commercial segments.
Strong net sales led to a 370 percent expansion in its net income to P34 million during the quarter.
CIC chairman and CEO Raul Joseph Concepcion said he remains confident of a medium-term recovery for the company.
“The business environment remains difficult, but we have made the right investments to weather the storm, and thrive in the recovery that follows,” Concepcion said.
“We remain confident that the fundamentals for an eventual economic recovery are in place,” he added.
Concepcion said CIC continues to build its products, brands, distribution, and logistics capabilities, while improving operational execution.
“We remain committed to our vision of Creating Happy Spaces for Filipinos and are ready once the recovery accelerates in the mid-term,” he said.