Splash income nearly triples

MANILA, Philippines - Splash Corp. almost tripled its net income in the first quarter on the back of robust growth in personal care business here and abroad.

Profit after tax surged 157 percent to P32.9 million in the first quarter from P12.7 million in the same period last year, the company said in a disclosure to the stock exchange.

Sales improved 8.7 percent to P832 million while operating profit spiked 47.7 percent to P42.8 million from P29 million a year ago.

“The growth in sales is mainly accounted for by the 14-percent growth in the Philippines personal care business as a result of successful advertising and improved sales from key accounts,” Splash said.

It also recorded a 32-percent increase in the international personal care sales, driven by increasing revenues from Africa, and the 25-percent growth of sales of Foods International from higher sales in North America and the Middle East, the company added.

Splash’s total whitening category rose 14 percent in the first quarter due to SkinWhite’s lotion line, which benefited from a recent advertising campaign. Splash carries the brands Extraderm, Maxi-Peel, Skin White and Bioskin, one of the fastest-growing skin care brands in the country.

“This sharp rebound in sales and net income validates the steps taken by Splash in 2013 to strengthen its operations and profitability,” the firm said.

For instance, the personal care products manufacturer strengthened its relationship with certain key accounts resulting in a more efficient inventory management and promo fund spending for both parties.

Splash said it also recalibrated its strategy for food, turning its focus on increasing sales in international markets such as the West Coast, the Middle East and Canada. It also started brand activation in relevant Filipino stores in the US and will launch Barrio Fiesta recipe mixes in the second quarter with variants bulalo, no boil lechon kawali, tinola, chicken inasal, caldereta and sinigang.

The short term impact of the reforms dragged the performance of Splash last year. Net income fell 20 percent to P73 million from P92 million while sales dropped five percent to P3.38 billion.

“Over the long term, Splash expects to grow as already evident in the first quarter 2014 results,” the company said.

In the domestic market, Splash Foods took the strategic direction of focusing on competitive products like that include bagoong and spiced vinegar.

Splash also integrated the sales and distribution of food and personal care in the sales, marketing and logistics arm Prime Global Distribution Corp.

For direct sales, Splash said it is focusing on efficiency following years of exponential growth in its network of dealers.

Splash Direct Sales is working toward a better mix of branches and independent business contractors, and rationalizing its credit policies.