PANASONIC Manufacturing Philippines Corp. (PMPC) posted a 91.4 percent surge in net income for its fiscal year ended March 31, 2025, driven by strong appliance sales and a substantial insurance payout following a major fire incident in 2023.
Panasonic, in its annual report filed Thursday, said net income for the fiscal year was P521.55 million, almost double the previous year’s P272.5 million.
Consolidated sales grew 18.6 percent to P16.9 billion, buoyed by “good sell-out activities of room air conditioner and refrigerator products for both export and local,” alongside strong restocking activity from major dealers during the “ber months” (September to December).
Company President Akio Ota, in a message to shareholders, described the fiscal year as “an extraordinary year” marked by a full recovery from the previous year’s disruption and a renewed focus on strengthening operations.
“Through strategic efforts and commitment to excellence, we made significant progress in strengthening our position and supporting growth,” he said.
Net sales reached P18.7 billion, up 119 percent from the previous year, highlighting the resumption of full operations after months of rebuilding.
Ota also acknowledged rising competition, noting the need for “cautionary plans to prevent China brands from gaining a significant ratio in market share.”
Gross profit increased by P477.5 million or 17.7 percent, driven by improved sales performance, while cost of goods sold rose by 18.8 percent to P13.72 billion, in line with the higher sales volume and the impact of rising imported raw material costs amid foreign exchange fluctuations.
Selling expenses climbed 16.9 percent or P215 million, attributed to increased freight, storage, advertising, commissions, and warranty claims.
General and administrative expenses rose 12 percent or P144.1 million due to higher brand license fees, salaries and wages, and related costs for production and sales.
Panasonic’s fiscal year result also benefited from other income amounting to P278.4 million — primarily from an insurance payout related to the December 2023 fire, alongside scrap sales and time deposit interest earnings.
“Our company profit improved compared with that of last year by 64 percent, which impact comes from increased sales,” Ota said, acknowledging that the declared profit included insurance claims from last year’s fire incident.
Panasonic, he continued, is rolling out transformation initiatives through its sales and marketing group, including a strategy centered on “Japanese Excellence” in branding, product development, and one-on-one marketing.
The company remains cautiously optimistic for the rest of the year.
“Although economic experts predict a better outlook for the Philippines this year… we will still be on the lookout to ensure our path to take is smooth and certain,” Ota said.
“Our mission goes beyond business; it is a commitment to serving society through our products and actively contributing to the growth and enrichment of Philippine culture,” he added.
“With resilience, dedication, and a shared vision, we will transform difficulties into opportunities and continue to make a meaningful impact.
Panasonic Philippines shares shed 51 centavos, or 6.60 percent, to close at P7.22 apiece on Friday.
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