Splash net profits down in 3rd quarter

MANILA, Philippines—Splash Corp. has reported that its third-quarter profits went down, due to intense market competition.

But Splash said it remained confident that the growth in its international operations could more than offset any slowdown in the domestic market.

Splash posted a net income of P10.7 million in the third quarter of the year, down from P11.9 million a year ago. “Domestic operations posted a drop in operating income for the first nine months amid strong competition but this was offset by the increase in income from the international operations and direct selling business,” the company said.

“We remain optimistic that we will end the year 2011 with modest improvements despite difficult market conditions,” Splash president Eric Domagas said in a statement.

For the nine months to September, Splash said it posted a net income of P66.6 million, up almost 10 percent from P60.662 million in the previous year on the back of higher revenue of P2.367 billion.

“The 7.9-percent increase in sales and the corresponding 2 percent increase in gross profit were negated by the increase in selling and general administrative expenses,” the company said.

Sales from domestic operations reached P1.797 billion for the nine-month period while sales from international and direct selling business operations reached P337 million and P201 million, respectively.

Splash said it also expected its recent acquisition of restaurant chain Barrio Fiesta Manufacturing Corp. to help in propping up the company’s earnings in years to come.