Splash injects P250M into food unit

MANILA, Philippines - Homegrown beauty and personal care products manufacturer Splash Corp. is injecting P250 million in fresh capital to boost operations of its food unit.

In a disclosure to the local bourse, Splash said its board of directors approved the increase in subscription and paid-up capital in subsidiary Splash Foods Corp. by 250 million shares at a value of P1 per share.

The company said the fresh capital would be used as working capital requirements in its food business.

“Funding will come from the collection of another subsidiary’s loan payment,” Splash said.

Splash made its foray into the food business through the acquisition of Barrio Fiesta Manufacturing Corp. (BFMC) in August 2011 and Moondish Foods Corp. in 2012.

BFMC and Moondish both offer several canned ready-to-eat Filipino product such as sautéed shrimp paste, sauces, fruit preserves and other condiments.

In the first half of this year, Splash’s foods division registered a 22-percent growth, driven mainly by international operations.

Splash Foods International’s turnover surged 50 percent, led by an expanded distribution network in North America, Middle East, Europe and Australia.

The subsidiary launched Barrio Fiesta Mixes in bulalo, tinola and sinigang variants in the US in April.

For this year, Splash expects robust growth for Barrio Fiesta and Moondish brands in the Middle East and North America by increasing its distribution network and implementing more consistently its brand activations.

Splash is the company behind brands SkinWhite and Maxi-Peel. The personal care manufacturer is also expanding its product portfolio with the introduction of new variants for Extract and Extraderm.