SPLASH Corp. on Friday said its net income rose by 46 percent in the first quarter of the year and already exceeding profit for the entire 2014 by more than four times.
The company said net income grew to P49 million for the period from some P38 million last year.
For the entire 2014, however, Splash only booked an income of P12 million on rising expenses.
For the first quarter of the year, total sales of the personal-care segment grew by 18 percent with Philippine operations contributing 21-percent growth; international operations, 4 percent; and direct sales, 5 percent.
“The growth in sales of personal-care products more than made up for the decline by 10 percent of the sales of the foods segment,” the company statement read.
Marketing, selling and distribution costs declined by 7 percent, mostly as a result of the steps taken in 2013 to strengthen Splash’s relationship with key accounts to ensure more mutually beneficial terms of engagement, it added.
“These revised terms resulted in more efficient inventory management and promo fund spending for both parties. This expense declined despite a sharp increase in advertising spent for Splash’s flagship brands SkinWhite and MaxiPeel, which helped to drive huge increases in sales and further strengthened their market dominance.”
Maxipeel continued its dominance as it was relaunched, which, Splash said, showed 30 to 50 times increase in social-media activity. Likewise, the advertising for SkinWhite’s Power Whitening variant was “phenomenally successful.”
Splash said its flagship personal-care brands continued their strong performance in international markets. Sales in markets, such as Africa, Middle East and Indo-China, increased by 92 percent, 13 percent and 2,336 percent, respectively.
In its food division, several Barrio Fiesta product lines were commercially introduced to the US market, including canned meals, specialty vinegars and recipe mixes. In the Middle East, Splash grew its distribution market, resulting in a 66-percent growth.
Management of account receivables of direct sales has improved significantly, according to a statement issued by the company.
Splash said it will implement an online system for its direct sales during the second semester, which will enable closer monitoring of all aspects of the operations and transactions of the direct sales network. “On top of this, a strategic shift in the Splash distribution model will result in improvements in cost efficiency and working capital utilization,” the company said.
Splash, a company led by the Hortaleza family, is expanding its footprint in Southeast Asia, Africa, the Middle East and North America. Splash shares went up 3.11 percent to P1.66 before the market closed for the weekend.