Splash eyes 50% profit growth this year

Splash Corp., the beauty and personal care unit of the Hortaleza family is eyeing a 50-percent growth in net profit this year, mainly coming from sales of new products.

Noel P. Manucom, Splash’s associate vice-president for corporate planning and business development, said the company is expected to post a net income of P300 million by the end of the year compared with P200 million in 2005.

Revenues are likewise projected to grow to P4.6 billion from P3.7 billion last year.

Manucom declined to divulge the number of products the company plans to launch this year but said the target market of these products are the mass to middle-income segments.

The company earlier said it would continue to launch two new brands and five VCO (virgin coconut oil) products this year to capitalize on the strong demand for natural food products or "nutraceuticals," which provide medical or health benefits and reduce the risk of chronic disease.

Currently available in the market are Accuherb, a line of flavored VCO, Theraherb for its herbal tea products, and dietary supplement capsules.

Splash is focused on promoting health and wellness and is committed to spend more for advertising and promotion of its products. Around P600 million has been budgeted for its marketing initiatives.

Meanwhile, Manucom said the company is now preparing for the maiden offering of its shares to the public, hopefully in the first quarter of 2007. "Preparations are now being made and we expect all these to be completed in eight to 12 months."

Consulting and auditing firm Ernst & Young was tapped as financial advisor for its planned P3-billion initial public offering (IPO).

Proceeds from the offering will be used to fund the company’s local expansion to ensure continued growth. It intends to develop a manufacturing hub either in Clark or Subic.

To further improve revenues, Splash is looking at new markets abroad like Thailand as next site for expansion. It is also keen on further expanding its presence in Indonesia in line with its bid to become a multinational firm.

The company has already penetrated 17 countries worldwide to include a joint venture in Indonesia and distributorships in Malaysia, Vietnam, Singapore and the Middle East. It is also looking at penetrating North America.

Splash currently dominates the skin care business in the Philippines with its whitening products under the brand names Extraderm, Maxipeel, Skin White and BioLink.

Each generates about P1 billion in sales. Together, the four account for 80 percent of the company’s total revenues.

Since its inception in 1985, Splash Corp. has become a P5- billion enterprise.

It now has a total of 350 direct employees plus 1,000 in affiliated companies.