Splash earnings up 18.8% in Q1

MANILA, Philippines - Personal care manufacturer Splash Corp. posted double-digit earnings growth in the first quarter as its new food and direct selling businesses made substantial contributions.

In a statement, Splash said its first quarter net income hit P12.8 million, 18.8 percent higher from the same period last year.

Consolidated net sales went up 11.4 percent to P766 million from P687 million a year ago.

Higher sales offset the increase in financing charges and operating expenses, Splash said.

For the whole of 2012, Splash said its net income rose seven percent to P92 million from P86 million a year ago.

“This increase was achieved despite almost flat consolidated net sales growth of one percent to P3.55 billion,” the company said.

But new businesses contributed more revenues to the beauty products manufacturer.

For instance, Splash Foods recorded a 275-percent surge in sales while the direct selling business, organized only three years ago to develop a more direct route to consumers, grew its sales 36 percent.

International operations registered an eight-percent sales growth.

“The results of the whole year of 2012 moving forward to the first quarter of 2013 validate our strategic shift to transform Splash into a strong player in the growing categories of fast-moving consumer goods,” said Splash chairman and CEO Rolando B. Hortaleza.

He said Splash aims to become a competitive player particularly in the food industry that provides economies of scale and complements with the core personal care business.

“These increases in food, direct selling and international operations helped to temper the 11-percent decline in sales of the Philippine operations division, which was affected by the transition of the distribution strategy to better reach the general trade,” Splash said.

Philippine operations accounted for 68 percent of Splash’s business, followed by 13 percent for international operations, 10 percent for the direct selling and nine percent for the food unit.

Splash said it derived 45 percent of its revenues from skin whitening products, 16 percent from skin exfoliants, 15 percent from hair care and 14 percent from new markets.

Splash carries the brands Extraderm, Maxi-Peel, Skin White and Bioskin, among the fastest-growing skin care brands in the country.