Splash income up 6.6% to P298 million last year

MANILA, Philippines - Personal care and cosmetics manufacturing giant Splash Corp. managed to post a 6.6-percent rise in net income last year despite a contracting economy that has squeezed consumer spending.

In a financial report submitted to the Philippine Stock Exchange, Splash said its net earnings last year amounted to P298 million, compared with P279 million in 2007.

Net sales rose 5.1 percent to P3.16 billion as operating expenses grew 17.7 percent to P1.4 billion.

The company intensified its marketing and brand-building initiatives last year, resulting in an increase in advertising and promotions costs of P916 million.

Gross profit margin improved to 10.5 percent of sales from 4.1 percent in 2007 as a result of lower costs of goods. With higher operating expenses however, operating profit margin declined to 8.1 percent.

The company’s flagship brands – Maxipeel and Skin White – both hit the billion-peso sales mark and continue to dominate their respective markets.

Maxipeel Exfoliant continues to rule its category with an 82 percent market share.

Skin White lotion and soap increased their lead further with market shares of 29 percent and 45 percent, respectively in 2008, up significantly from their respective levels of 25 percent and 36 percent shares in 2007.

Another core brand, Kolours Hair Dye, fortified its market leading share to 58 percent from 49 percent.

While it expects 2009 to be an even more tough year, Splash said it remains optimistic that it can churn out another respectable performance given its strong brand and the continuous improvements in processes that could result in a more cost-effective operation.

Other brands being sold by Splash include Biolink, Extract, Extraderm, Tricks and Vitress.

Splash recently launched new lines under the Theraherb brand, namely Up&Alert, Off-to-Bed and Slim&Slender to enhance its competitiveness in the health and wellness category which targets the growing call center market.

Splash will continue to expand its presence overseas with plans to invest P50 million in a new subsidiary that will market and distribute its products in Indonesia beginning this year. Splash products are currently spread in 1,032 outlets of leading groceries and supermarkets, with 23 third-party distributors serving 26,102 retail outlets.

Overseas, its products are already distributed in 25 countries across the African, Asian, and North American continents. This international distribution contributes to 15 percent of total net sales.   – Zinnia Dela Peña