2014 net income drops to P12M from P73M in absence of one-time extraordinary gains
Splash Corp., maker of Skin White and Maxipeel beauty products, reported a 46-percent increase in its net income for the first three months of this year to P49 million from P38 million for the same period last year on improved sales of its personal care products.
The company said in a statement its first quarter sales rose by 15 percent to P957 million from P832 million compared to same period a year ago.
But Splash’s 2014 net income plummeted to P12 million from P73 million the previous year due to lack of one-time extraordinary gain it made in 2013.|
The one-time gain in 2013 amounted to P70 million from the sale of a non-core asset. Splash’s net income could have increased four fold from the P3-million core profit in 2013 without the extraordinary gain.
Its P49-million first quarter net income is four times more than the P12-million net income in 2014. This is due to operating income improving 36 percent to P58 million this year from P43 million for the same period last year.
First quarter growth was seen across its businesses except the food segment that declined by 10 percent. Its personal care segment grew 18 percent; Philippine operations, 21 percent; international operations, 4 percent; and direct sales segment, 5 percent.
For the full year 2014, Splash’s total sales inched up 4 percent to P3.5 billion from P3.5 billion a year ago, while operating income leapt by 153 percent to P47 million from P19 million in 2013.
Sales last year were positive for Philippine operations that increased 11 percent; international operations, 3 percent; and food sales that ended flat. Despite the others gaining, revenue in direct sales posted a 38-percent decrease last year.
In terms of its international operations, the company said its flagship brands in personal care has grown strong across investment regions in the past year—having 92 percent growth in Africa, 13 percent in Middle East, and a surge of 2336 percent in IndoChina.
In the food segment, Splash introduced Barrio Fiesta product lines in the US such as canned meals, specialty vinegars and recipe mixes. It also improved it distribution in the Middle East region by 66 percent last year.
Splash said it aims to grow “double digits” annually in both revenue and net income given the four-fold improvement in its performance year on year.
Splash is known for its ventures in skin whitening products, exfoliants, hair care and other segments such as food and hospital business.
The company is behind personal care brands such as Kolours, Vitresse, Extraderm, Maxi-Peel, Skin White, Biolink, and Theraherb VCO, as well as food brands Barrio Fiesta and Moondish Foods.
Splash’s products and brands is present in Southeast Asian and European countries, United States, China, Hong Kong, Japan, South Korea, Taiwan, India and countries in Middle East and Africa.
Kristyn Nika M. Lazo