Splash eyes acquisition of cosmetic firm in Vietnam

Splash International Inc., the corporate vehicle of the Splash Group for its operations overseas, is in talks with a company based in Vietnam for a possible joint venture as part of efforts to further expand its presence in that country.

Noel P. Manucom, associate vice-president for corporate planning and business development at Splash Corp., said the group hopes to acquire a medium-sized cosmetics company through a partnership with a Vietnamese firm.

"We believe we might have a first mover advantage in Vietnam. The market is still at the infancy stage," Manucom said. To further boost revenues, the Splash Group is also looking at new markets abroad like Thailand as next site for expansion. It is also keen on further expanding its presence in Indonesia in line with its bid to become a multinational firm.

The group has already penetrated 17 countries worldwide including a joint venture in Indonesia and distributorships in Malaysia, Vietnam, Singapore and the Middle East. It is also looking at penetrating North America.

Splash currently dominates the skin care Business in the Philippines with its whitening products under the brandnames Extraderm, Maxipeel, Skin White and BioLink. Each generates about P1 billion in sales. Together, the four account for 80 percent of the group’s total revenues.

Since its inception in 1985, Splash Corp., the mother company has become a P5 billion enterprise. It now has a total of 350 direct employees plus 1,000 in affiliated companies.

Splash Corp., the personal care unit of the Hortaleza family’s Splash Holdings Corp., is eyeing a 50 percent growth in net profit this year, mainly coming from new product sales. Net income is seen to reach P300 million this year compared with P200 million in 2005.

Revenues are likewise projected to grow to P4.5 billion to P4.6 billion from P3.7 billion last year.

The group is focused on promoting health and wellness, and is committed to spend more for advertising and promotion of its products. Around P600 million has been budgeted for its marketing initiatives.