Personal care product and food producer Splash Corp. grew its net profit in the first quarter by 157.6 percent year-on-year to P32.9 million as sales rebounded after taking consolidation measures in 2013.
Last year, net income dropped by 20.6 percent to P73 million as the company embarked on “necessary but painful” measures to strengthen its operations amid what it described as a “challenging” environment.
Sales in 2013 declined by 5 percent to P3.38 billion, the company said in a statement.
For the first quarter, Splash said its operating profit expanded by 47.7 percent to P42.8 million on the back of an 8.7-percent expansion in sales to P832 million.
The company’s sales in the first three months of 2014 were fueled by the following: 14-percent growth in the Philippine personal care business, 32-percent increase in international personal care sales given increasing revenues from Africa and 25-percent growth of sales of international food business due to higher sales in North America and the Middle East.
“This sharp rebound in sales and net income validates the steps taken by Splash in 2013 to strengthen its operations and profitability. A key step that Splash took was to strengthen the relationship with certain key accounts to ensure mutually beneficial terms of engagement. This resulted in a more efficient inventory management and promo fund spending for both parties,” the company reported.
Splash’s “Total Whitening” category for skin products grew by 14 percent in the first quarter versus same period last year. This growth was attributed to the “phenomenal success” of the recent advertising campaign for the “Power Whitening” lotion variant that promises to significantly whiten skin in as fast as seven days.
The company said it had also recalibrated its strategy for food, focusing on international markets like the United States, Middle East and Canada. Doris C. Dumlao