Splash Corp. unit gets P250M in fresh funds

SCREENGRAB from www.splash.com.ph

Personal care product and food producer Splash Corp. is injecting about P250 million in fresh capital into its food unit to boost its working capital requirements.

In a disclosure to the Philippine Stock Exchange on Friday, Splash said its board had approved the increase in subscription and paid-up capital in subsidiary Splash Foods Corp. (SFC) by 250 million shares at its par value of P1 a share.

The fresh capital is meant to augment the working capital requirements of this food unit and will be covered by the collection of a loan payment of another subsidiary.

Splash is optimistic about its food business, which grew by 22 percent year-on-year in the first semester mainly due to international operations. Splash Foods International grew sales by 50 percent, driven by an expanded distribution network in North America, Middle East, Europe and Australia, based on the company’s latest report.

Barrio Fiesta Mixes in Bulalo, Tinola, No Boil Lechon Kawali, Caldereta, Chicken Inasal and Sinigang variants were launched in the United States last April.

The food business accounted for 8 percent of the company’s total revenues in 2013.