AS a result of an increase in operating profit by 72.6 percent and a decrease in operating expenses by 2.8 percent, Splash Corp. boosted its net income to P40.9 million for the first three quarters of 2014, up 80 percent over the P22.7 million it booked for the same period last year.
Sales for the period amounted to P2.57 billion up by 2.8 percent over the P2.5 billion for the same period last year. The revenue growth came from the 37-percent growth in foods mainly from its international operation and the 8.4-percent growth in the personal-care segment.
Sales of Splash Foods Corp. International continues to benefit from its expanded distribution network in North America, Middle East, Europe, and Australia and the broader product range of Barrio Fiesta Mixes being distributed in the US.
Ace Villa-Real, president of Splash Foods Corp., said, “SFC is focusing on the international market, particularly in areas where there are large concentrations of Filipinos due to the strong growth prospect in these markets. Barrio Fiesta shrimp paste and easy-to-use mixes give overseas Filipinos a convenient way to have an authentic taste of home.” Sales of Personal Care in the whitening and exfoliant categories grew by 81 percent and 6 percent, respectively, in Africa and the Middle East. Revenues of Personal Care Philippines increased by 8 percent for the first three quarters of 2014. Core-brand SkinWhite continued on its upward track, growing by a combined 15 percent for both its face and body lines.
Operating profit of the personal-care segment improved with reduced selling expenses in the major retail chains. “The cost of doing business of Personal Care Philippines has decreased considerably by focusing on programs that mutually benefit the retail chains and the company,” Philippines Operations Division VP and GM Marco Nieto said. The combined growth in the foods and personal-care sectors more than offset the 38-percent decline in the revenues of Splash’s direct-sales business.
“Direct Sales is going through a necessary process of reengineering its internal processes and improving its distribution model. We concentrated on rapidly building our network in the first years of operations, but now we have to focus on further improving efficiency and profitability,” said Direct Sales VP and GM Glenda Pingol. Among the measures being instituted are improvements in the credit-granting and credit-management policies and upgrades in the entire Enterprise Resource Planning of Direct Sales. Splash Corp. 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.