SPLASH Corp. expects to grow by double digits this year after its profit grew six-fold in 2010.
In a disclosure to the Philippine Stock Exchange, the homegrown personal care manufacturer said its earnings surged 500 percent to P144 million from the P23.74 million in 2009 when Splash was severely hit by the global financial crisis.
“We posted higher net income due to efficient use of plant assets, tighter control on expenses, launch of our new products like Hygienix and Skinwhite Teens Lotion and the strong performance of our three business segments—domestic, international and direct selling,” Eric Domagas, Splash president, said.
Net sales rose 9.8 percent to P2.99 billion from P2.72 billion in 2009.
Skin whitening products accounted for P1.3 billion of the total sales, followed by skin exfoliants at P1.04 billion and hair products at P542.3 million.
The company’s international operations registered net sales of P407.984 million last year, up 67.5 percent from P243.58 million in 2009.
“We are confident that the company will continue to post double-digit growth this year. We believe in the continued growth of our direct selling and international business segments,” Domagas said.
The company earlier said it expects to grow by 20 percent this year, driven by its international operations, which account for over a tenth of total revenues.
Its strong foothold in the Middle East, Indochina and the Asean region, where it has existing subsidiaries and offices, also helped boost sales.
The company’s direct selling business, which began in 2009, recorded a significant growth in net sales of P40.8 million in 2010 from P3 million the previous year.
“Splash direct sales will be very aggressive in its effort to build its pioneer network for the year 2011,” Glenda Pingol, Splash direct selling head, said.
Net sales of its domestic operations inched up 3 percent to P2.539 billion from P2.472 billion in 2009.
The company increased its capital expenditure budget from P37.9 million to P426 million this year to finance the expansion of plant capacity, improvement of facilities and enhancement of management information systems for international and direct selling operations.
Splash shares fell to P2.30 on Wednesday from P2.40 the day before.