Splash grows net profit by 46% in first quarter

Splash Corp., a listed personal care products manufacturer, said profit in the first quarter of 2015 rose amid higher sales.

Splash said in a filing at the Philippine Stock Exchange (PSE) Friday that net income during the quarter hit P49 million, up 46 percent from the same period in 2014. It said sales during the quarter rose 15 percent to P957 million. Splash credited the gains to its flagship brands Maxipeel exfoliating products and whitening lotions.

This followed weak earnings in 2014, which saw profits plunge 83 percent to P12 million on the absence of a noncore asset sale the previous year.

Its operating profit improved significantly for Philippine operations and international operations to P288 million and P72 million, respectively, in 2014.

While food continued to be in its investment phase, operating loss was cut in half to P77 million. The implementation of a new business model and the focus on network management resulted in an expected operating loss of P236 million in direct sales, Splash said.

The company noted that its flagship personal care brands continued their strong showing in international markets. Sales in investment markets including Africa, Middle East and Indo-China increased by 92 percent, 13 percent and 2336 percent, respectively.

Sales of Philippine operations rose 11 percent in 2014, international operations by 3 percent, while food sales were flat. These increases helped offset the 38-percent decline in direct sales revenue.

For the first quarter of 2015, total sales of the personal care segment grew by 18 percent with Philippine operations contributing 21-percent growth, international operations, 4 percent, and direct sales, 5 percent. The growth in sales of personal care products more than made up for the decline by 10 percent of the sales of the food segment, the company said.

In its food segment, several Barrio Fiesta product lines were commercially introduced to the US market, including canned meals, specialty vinegar and recipe mixes. In the Middle East, Splash grew its distribution market, resulting in 66-percent growth.