Splash 2015 earnings grow more than 13 times to P160M

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LISTED Splash Corp., maker of “Skin White” and “Maxi Peel” products, said on Wednesday its 2015 earnings last year soared more than 13 times on the strong sales performance of its personal care business.

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In a disclosure to the Philippine Stock Exchange, the company said net income expanded to P160 million from P12 million in 2014 while sales increased to P3.78 billion from P3.49 billion previously.

Cost of goods sold as a percentage of sales was trimmed to 42 percent from 45 percent previously, while operating expenses were maintained at 54 percent of sales.

Improved sales were led by its personal care business, with the Philippine operations posting 12 percent growth while the international operations saw sales rise 13 percent.
Its food business recorded a more modest sales increment of 3 percent.

Direct sales decreased by 31 percent as it continued to transform its business model for long-term viability, the company said.

Sales of its flagship products SkinWhite and MaxiPeel continued to grow at satisfying rates, Splash said.

“This despite aggressive marketing of competing products which increased their media and in-store promotions spending to rates several times previous levels. Our communication strategy highlighted the strength of our products in terms of quality and pricing and strong affinity with their consumers,” the company said.

In addition, the company said it was able to optimize its marketing spending and managed to decrease its selling expenses through the rationalization of its trading terms with national supermarket and drugstore chains, and the efficiencies derived from the integration of distribution under Prime Global Distribution.

Splash noted that the growth of its personal care business in its international operations division (IOD) was mostly through its focus on naturals, capitalizing on the growing trend of consumers toward organic and natural-based products.

“IOD continues to build its distribution base, focusing on markets where the retail landscape is still developing, like Nigeria in Africa and Indonesia in Asean,” Splash said.

Meanwhile, it said its food business, Barrio Fiesta Manufacturing Corporation (BFMC), started contributing to earnings last year. BFMC generated operating income of P36 million and a net income of P10 million.

Under its International Food Division, Splash said it introduced new products in the US market by expanding its portfolio of products under the Barrio Fiesta brand. Products including vinegar, dried fish and dried taro leaves were sold in North America and the Middle East, the company said.

KATRINA MENNEN VALDEZ

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