Splash Corporation registers double digit growth in net income

Diversifying Splash Corporation, a corporation listed in the Philippine Stock Exchange,
registered net sales of PhP1.63 billion for the first semester of 2013, up by 6.4 percent over the PhP1.53 billion for the same period in 2012. Net income grew by 19.2 percent to PhP13.2 million from PhP11.1 for the first semester of 2012.

The gross profit increased by 12.6 percent due to better sales mix for all divisions and a decline in cost of goods sold despite higher sales. Total operating profit of PhP34.3 million was an increase of 80.8 percent compared to same period last year. This was slightly offset by higher interest expense due to additional borrowings for capital expenditures and working capital requirements which Splash incurred to realize its 5-year strategy of transformation, investment and consolidation after two decades of exponential growth.

The increase in net sales, after flat sales growth for the whole of 2012, mainly came from the personal carebusiness both in retail and direct sales. The 5.4 percent growth in retail reverses the 11 percent decline in sales for the whole of 2012, validating the shift in the distribution strategy to better reach the general trade.
The 15 percent growth in direct sales for the first semester of 2013 continues the double digit ‘growth trend of the division which was organized by Splash to develop another major route to market and protect its leadership in the whitening and exfoliant markets. For the whole year of 2012, the division registered a sales growth of 36 percent.Euromonitor International, a firm that tracks consumer trends in the Philippines, noted that in 2012 “Splash Direct Selling, Inc., which is the direct selling arm of manufacturer Splash Corp., reports the most vibrant performance in direct selling.”

Splash direct selling continued its rapid growth by aggressively recruitingand expanding its
network of independent dealers andbranches in order to penetrate more municipalities. It has also introduced more competitively priced brands of beauty and personal care products and home care products.

“The year 2013 promises to be an inflection point in Splash’s history. We are once again seeing increases in sales in Splash’s core personal care business, even as the growth of businesses like direct sales, international operations and food affirm our strategy of diversification,” says Dr. Rolando B. Hortaleza, Splash Chairman and CEO.
Splash Corporation provides pioneering and high-quality products and services that cater to the universal desire of people to look good and live well. From a leadership position in the
Philippines, it is successfully venturing into high-growth markets in Southeast Asia, Africa, the
Middle East and North America.

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