Splash sets P300-M capex for expansion

MANILA, Philippines - Beauty and personal care products maker Splash Corp. has set a capital expenditure program of nearly P300 million this year to continue its expansion and grow its presence in the food business.

In its disclosure to the stock exchange yesterday, Splash said its board approved a capital budget of P294.8 million in 2012. Of the total, P152.2 million will be used to acquire machineries for new beauty products while P142.6 million will go to Splash Foods Corp., a newly-formed unit that now owns the Barrio Fiesta brand of canned food and condiments.

In September last year, Splash acquired 80 percent of the food manufacturing arm of Barrio Fiesta, which offers a number of food products that have been staples in Filipino households for over 50 years, from sautéed shrimp paste to ready-to-eat canned meals, sauces such as white vinegar, fish sauce, soy sauce and lechon sauce, to fruit preserves and other condiments.

Splash plans to launch various food products (including condiments) here and abroad over the next 12 to 24 months.

Splash chief executive Rolando B. Hortaleza said the group is aiming to become a major player in the food industry through the expansion of food lines and capitalizing on its marketing and distribution capabilities in specific countries.

Splash, which is consistently in the top 300 Philippine corporations since 1998, carries the brands Extraderm, Maxi-Peel, Skin White and Bioskin, one of the fastest-growing skin care brands in the country.

The company posted a net income of P66.6 million in the first nine months of 2011, almost 10 percent higher than the P60.7 million reported the previous year-period.

Total net sales rose 7.7 percent to P2.37 billion while gross profit went up to P1.33 billion from P1.31 billion.

Sales from domestic operations amounted to P1.8 billion while sales from international and direct selling business operations reached P337 million and P201 million, respectively.