Splash’s 1H profit up 133%

PERSONAL care and food producer Splash Corp. grew its first semester net profit by 133 percent year-on-year to P93 million led by a double-digit growth in sales of personal care products.

Revenues from the domestic sale of personal care grew by 17 percent while international sales likewise expanded by 19 percent year-on-year, the company reported to the Philippine Stock Exchange on Monday.

Gross profit for the six-month period stood at P1.1 billion, 20 percent higher than for the same period last year while operating profit went up by 64 percent year-on-year to P110 million.

Stronger cash flow was attributed to higher sales and profits and improvement in working capital utilization.

Cash generated from operations for the first semester amounted to P416 million, only P74 million short of total cash generated for the whole of 2014.

Splash said personal care flagship products under the Maxipeel brand increased the base of new users through new packaging and advertising. The company also reported that SkinWhite – riding on strong consumer acceptance of instant whitening solutions – continued to dominate the Philippine market in this segment.

Flagship personal care brands also continued their strong showing in international markets including in investment markets including Africa, Middle East, and Indo-China, the company said.

In the food segment, Splash reported a strong performance in the US by the newly introduced Barrio Fiesta product lines, including canned meals, specialty vinegars and recipe mixes. It was also reported that in the Middle East, the growth of the distribution network for Splash foods contributed to higher sales.

In the Philippines, Splash personal care and food products are distributed by Prime Global Corp., which reported a revenue growth of 61 percent in the first semester versus the same period last year. Prime Global was set up by Splash in 2012 to optimize the group’s resources by having its products distributed in the same network. It is now a full-service sales, marketing and logistics company in the fast-moving consumer goods industry and also distributes goods from other companies.

Splash also said it continued to improve the management of its account receivables for its direct sales business. It plans to roll out by the second semester of 2015 a new on-line system that will enable closer monitoring of all aspects of the operations and transactions of the direct sales network. For direct selling, the company also noted a strategic shift in the distribution model which is seen to result in improvements in cost efficiency and working capital utilization alongside an enhanced income scheme for dealers to motivate them to sell more and earn more.