Splash profit rises 19%

MANILA, Philippines - Personal care manufacturer Splash Corp. recorded a double-digit income growth in the first half, driven by better performance of its direct sales business.

In the January to June period, Splash’s profits expanded 19.2 percent to P13.2 million from P11.1 million a year earlier, supported by a 6.4-percent growth in net sales to P1.63 billion from P1.53 billion.

“The increase in net sales, after flat sales growth for the whole of 2012, mainly came from the personal care business both in retail and direct sales,” Splash said.

Higher sales validated the shift to a distribution strategy, which improved market reach in general trade, the company said.

“The year 2013 promises to be an inflection point in Splash’s history. We are once again seeing increases in sales in Splash’s core personal care business, even as the growth of businesses like direct sales, international operations and food affirm our strategy of diversification,” said Splash chairman and CEO Rolando B. Hortaleza.

The listed firm also recorded a 15-percent growth in direct sales for the first semester. It forms part of Splash’s strategy to develop another major route to market and protect its leadership in the whitening and exfoliant markets.

Euromonitor International, which tracks consumer trends in the Philippines, noted that subsidiary Splash Direct Selling Inc. has reported one of the most vibrant performance in direct selling.

“Splash direct selling continued its rapid growth by aggressively recruiting and expanding its network of independent dealers and branches in order to penetrate more municipalities,” the company said.

It also introduced more competitively-priced brands of beauty and personal care products and home care products.

The firm is pursuing high-growth markets in Southeast Asia, Africa, the Middle East and North America.

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.

In 2011, Splash bought an 80-percent stake in Barrio Fiesta Manufacturing for P472 million. Bonifacio E. Ongpauco, Jr. and his children sold their shares in the Filipino condiments and canned goods maker Barrio Fiesta Manufacturing.

This move jumpstarted Splash’s product and brand diversification.