Press Coverage on Splash Corp’s 2011 Planned Capital Expenditure

MALAYA
Jan 18, 2011

Listed Splash Corp. (Splash), manufacturer of personal care products, has increase by more than 9 times its planned capital expenditure for the year.

The company, in a regulatory filing, said the P426 million capex will be spent for “expansion of plant capacity, improvement of facilities and enhancement of management information systems for international and direct selling operations.”

Last year, Splash spent approximately P40 million for acquisition of plant equipment and other tools, and upgrade of production facilities.

Splash late last year expressed confidence that profit for 2010 would hit more than four times the amount recorded the previous year. The company’s revenues were improving by 15 percent, driven by the company’s market expansion.
For the full year of 2009, Splash recorded a net income of P23.73 million and revenues of P2.71 billion.

If the target is achieved the company stands to earn an income of P130.52 million on revenues of P13.12 billion.
Eric Domagas, Splash president, attributed the company’s confidence of a boost in earnings on improved efficiency.

“We are confident that we will deliver our full-year performance target of 450 percent increase in net income. We attribute this to efficient use of plant assets, tighter control on expenses, launch of our new products like Hygienix and Skinwhite Teens Lotion and the strong performance of our three business segments – domestic, international and direct selling,” Domagas said.

“Our performance in 2009 was affected by the global economic downturn and some internal issues but we have bounced back and are confident that the company will continue to post double digit growth through to next year,” he added.

MANILA TIMES
Splash hikes capex for 2011
Tuesday, 18 January 2011 00:00
SPLASH Corp. increased its capital spending by 10-fold this year amid favorable political and economic conditions.
In a disclosure to the Philippine Stock Exchange, the personal care product manufacturer said its board approved the capital expenditure hike to P426 million this year from P37.9 million in 2010.

The capex will finance the expansion of plant capacity, improvement of facilities and enhancement of management information systems for international and direct selling operations.

“We are investing a great deal on our capex as there is a need for us to further expand our capacity to
support the robust revenue growth target in 2011,” Vicci Tomas, Splash chief financial officer and head of investor relations, said in a statement.

“The political and economic environment has been very favorable and we expect that to continue moving forward,” Tomas said.

Splash said it would finance its capex through internally generated funds.

The company’s direct selling business will expand to 11 branches and 26 independent centers run by dealers in the first quarter.

Also boosting the company’s growth is its venture into foreign markets like Malaysia, Vietnam and Africa, where Splash established new offices.

It expects to end the year with a sales revenue growth of 15 percent to more than P3 billion and a net income expansion of more than four times to P131 million. The improvement would be brought about by the significant gains in the use of plant assets, tighter control on expenses, new product launches and the strong performance of its domestic, international and direct selling business segments.

The company’s earnings grew four-fold in the first nine months of 2010 to P60.66 million from P12.31 million in 2009.
Splash shares lost P0.02 to close at P2.53 each on Monday.
KRISTA ANGELA M. MONTEALEGRE

BUSINESS WORLD
Splash hikes capital spending

HOMEGROWN PERSONAL care products manufacturer Splash Corp. has increased planned capital spending for the year by more than eleven times.

In a disclosure on Monday, Splash said its board of directors had “approved the 2011 capital expenditure budget of P426 million.”

The funds will be used “for the expansion of plant capacity, improvement of facilities and enhancement of management information systems for international and direct selling operations,” Splash added.

Last year, Splash spent P37.9 million for the acquisition of plant equipment, the upgrade of production facilities, as well as the acquisition of computers and “productivity tools.”
Profits of the firm hit P60.66 million in the nine months that ended in September last year, almost five times the P12.31 million recorded a year ago.

The homegrown company, which was incorporated in 1991, is into the development, bottling, packing, and marketing of cosmetics, beauty, and pharmaceutical products in the Philippines and abroad. Splash products and brands are classified into four basic categories: haircare, skincare, naturals, and health and wellness.

Shares in Splash, whose brands include Vitresse, Control, Skin White, and Biolink, closed P0.02 lower at P2.53 apiece on Monday. — Neil Jerome C. Morales

MANILA STANDARD TODAY
Splash investing P426m for expansion

Local personal care maker Splash Corp. is spending P426 million in capital expenditure this year for expansion.
Splash said in a disclosure to the stock exchange that it would to expand plant capacity, improve facilities and enhance management information systems for international and direct selling operations.

The company plans to use internally generated funds to finance the capital spending.”We are investing a great deal on our capex as there is a need for us to further expand capacity to support the robust revenue growth target for 2011. The political and economic environment has been very favorable and we expect that to continue moving forward,” Splash chief finance officer Vicci Tomas said.

Splash earlier said net income in 2010 likely surged 240 percent while sales increased 15 percent.Splash president and chief operating officer Eric Domagas earlier said the company was expected to post significant gains for the full of 2010 due to higher sales of new and existing products in the local and international markets.
Splash in 2009 recorded a net income of P23.73 million and revenues of P2.71 billion.

“Our performance in 2009 was affected by the global economic downturn and some internal issues but we have bounced back and are confident that the company will continue to post double digit growth through to next year,” Domagas said.

He said the company’s direct selling business would have 11 full-blown branches and 26 independent centers run by dealers by the first quarter this year.

He cited that the company’s recently launched Skin White Naturals Papaya Milk had been well received and surpassed expectations in the market. Jenniffer B. Australia

PHILIPPINE STAR
Splash allots P426M for capex
By Zinnia B. Dela Peña

MANILA, Philippines – Splash Corp., the country’s leading locally-owned beauty and personal care products manufacturer, has set a P426-million capital expenditure program this year, more than 10 times the previous year, as it ramps up its production line.

“We are investing a great deal on our capex as there is a need for us to further expand our capacity to support the robust revenue growth target in 2011,” said Vicci Tomas, chief financial officer and head of investor relations at Splash.
Tomas said while this year’s capital budget is relatively bigger than the 2010 level, the company has enough cash to cover this.

“The political and economic environment has been very favorable and we expect that to continue moving forward,” Tomas said.
Splash earlier said it was expecting a more than five-fold jump in net earnings and a 15-percent growth in sales revenues in 2010 on the back of new product launches and successful cost-containment measures.The company posted a net profit of P23.73 million in 2009 on revenues of P2.71 billion.

To further boost sales, the group’s direct selling business will expand to 11 full-blown branches and 26 independent centers run by dealers by the first quarter this year.

Outside the Philippines, Splash is stepping up its presence with the establishment of new offices in Kuala Lumpur in Malaysia, Ho Chi Minh City in Vietnam and in Africa.

According to Splash, these newly established offices brings the company several steps closer to its target market.
Splash was named as one of the best managed companies in Asia by Hong Kong-based financial publishing giant FinanceAsia for the third consecutive year since 2008.

Splash, which started with a capital of only P12,000 in 1985, has since grown into a billion-peso company.
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