SPLASH CORPORATION FINANCIAL RESULTS

Leading personal care manufacturer Splash Corporation posted strong profits last year amounting to P144 million, a staggering 500 % increase from P23.737 million in 2009.

Splash reported to the Philippine Stock Exchange that its robust financial figures last year can be attributed to efficient use of plant assets, lower expenses, new product lines and the strong performance across all its business segments – domestic, international and direct selling.

“We posted higher net income due 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,” Splash president Eric Domagas said.

Splash recorded total net sales of P2.988 billion in 2010, up 9.8 % from P2.721 billion in 2009.

Skin whitening captured the growth in product sales last year reaching P1.3 billion, followed by skin exfoliants at P1.043 billion and hair products at P542.3 million.

The Company’s international operations recorded net sales of P407.984 million last year, up 67.5% from P243.58 million in 2009.

Splash sells and markets personal, health and beauty products through foreign distributors outside the Philippines and local consolidators who export its products abroad.

Splash’s strong presence in the Middle East, Indochina and Asean region also helped the company gain a foothold in international sales. Splash has put up subsidiaries and offices in these areas to support the company’s growth.

The Company’s direct selling business, meanwhile recorded phenomenal growth in net sales reaching P40.8 million in 2010 from P3 million a year ago.

The direct selling business is tasked to distribute the group’s product lines such as cosmetics and fragrances through its dealers and business partners.

Splash direct selling business started only in 2009. Splash direct selling business centers’ and dealer operated service centers’ are strategically located in Luzon, Visayas, Mindanao Area.

“Splash direct sales will be very aggressive in its effort to build its pioneer network for the year 2011,” Splash direct selling head Glenda Pingol said.

Net sales of Splash’s Philippine or domestic operations, on the other posted a modest growth of 3% to P2.539 billion from P2.472 billion in 2009.

Splash sells and markets personal, health and beauty products through distributors around the country.

The company spent capital expenditures of P69 million in 2010 from P21.3 million in 2009.

The company’s board approved higher capex this year amounting to P426 million which will be spent for plant capacity expansion, improvement of facilities and enhancement of information systems for international and direct selling operations.

“We are confident that the company will continue to post double digit growth this year. We believe in the continued growth of our direct selling and international business segments,” Domagas said.

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