Watsons raises capital to P665M

Watsons Personal Care Stores (Philippines) Inc., a joint venture between the SM Group of Companies and Hong Kong-based A.S. Watson & Co. Ltd., is raising its capitalization to P665 million from P315 million.

Based on documents filed at the Securities and Exchange Commission, the entire P350-million capital hike was paid for in cash.

The additional capital will be used to expand operations nationwide to further boost sales.

Watsons earlier said it was eyeing sales in the Philippines of P10 billion in 2007 on robust sales of its health and beauty products.

Watsons is the largest health and beauty retail chain in Asia with over 6,800 stores in 33 countries worldwide.

Watsons, which set up shop in the Philippines in 2002, now has over 170 stores in and outside Metro Manila.  It aims to put up 20 to 25 stores annually to maintain its strong foothold in the local skin and hair care, cosmetics, health and wellness products sectors.

Watsons is the flagship health and beauty operation of the A.S. Watson Group (ASW), a wholly owned subsidiary of Hutchison Whampoa Ltd. — the largest health and beauty retailer in the world, serving more than 25 million customers per week worldwide.

Watsons’ flagship outlet at SM Mall of Asia recently underwent renovation in order to attract more customers.