PERSONAL care product and food producer Splash Corp. jacked up its net profit last year by 13 times to P160 million as the company grew its sales volume while managing cost pressure.
Splash grew its sales last year by 8 percent increase in sales to P3.78 billion alongside marginal increases in costs, the company reported to the Philippine Stock Exchange on Wednesday.
Cost of goods sold as a percentage of sales eased to 42 percent from 45 percent in 2014 while the company maintained the same level of operating expenses at 54 percent of sales.
The sales increase came mostly from higher sales of the personal care business for both the Philippine and international operations, which respectively grew by 12 percent and 13 percent.
The food business also registered a sales growth of 3 percent.
On the other hand, output from direct sales declined by 31 percent as the unit “continued to transform its business model for long term viability,” the company said.
Sales of flagship products SkinWhite and MaxiPeel continued to be brisk despite stiff competition, the company reported.
“Splash was able to optimize its marketing spend and even managed to decrease its selling expenses through the rationalization of its trading terms with national supermarket and drugstore chains and the efficiencies derived from the integration of distribution under Prime Global Distribution,” the company said.
Prime Global was set up by Splash 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.
SkinWhite Glutathione, a new whitening variant, doubled sales “after a very creative advertising
campaign,” the company said. Flawlessly You also reported strong sales, driven by its endorser Nadine Lustre, a popular young star.
Splash introduced SkinWhite Classic Whitening Lotion Light, a variant of SkinWhite Classic Lotion that uses a light-feel technology that is easily absorbed so it whitens skin without leaving a heavy sticky feel.
Hygienix Soap antibacterial was introduced as an initial foray into the mainstream soap market.
The company said Hygienix Soap – which is distributed exclusively in Puregold stores and priced lower than its dominant competitor – was doing very well.
The growth of the personal care business in international operations was mostly through its focus on organic and natural-based products. This unit is focusing on markets where the retail landscape is still developing, like Nigeria in Africa and Indonesia in Southeast Asia.
The food business under Barrio Fiesta Manufacturing Corp. (BFMC) registered an operating income of P36 million and a net income of P10 million. Products including cooking vinegar,
dried fish and dried taro leaves were rolled out in North America and the Middle East.