Splash Corp to spend P1 billion on ad, sales promo this year

MANILA, Philippines - Local personal care and cosmetics manufacturing giant Splash Corp. is allotting nearly P1-billion for its advertising and sales promotion expenses, most of which will be spent in the second half of the year.

Splash president Jessin Soriano, said the promotional campaign would center on the company’s banner brands which are market leaders in their respective categories.. These brands include Maxi-Peel, Skin White and Extract Whitening products.

Ramon Trajano, chief finance officer of Splash, said the company will use internally-generated funds and proceeds from its initial public offering, which remain intact, to fund its advertising program.

Last year, the company spent P916 million for its advertising campaign.

Soriano said the company will continue to invest in the research and development of new products this year to cater to the ever-growing needs of consumers and expand its coverage.

“We plan to continue to invest in R&D this year especially for an industry like ours and we will also continue to penetrate the international market,” Soriano said.

Splash recently introduced to the market Skin White 3 in 1 face cream powder, which has been warmly accepted by the consuming public.

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. 

The company is expected to post a single digit growth in net profit in the second quarter this year amid the ongoing financial downturn.

“Even during crisis, people still want to look good and feel good. That’s a proven concept, when the economy is down, the personal care industry goes up. People don’t stop using products. They just somehow reduce usage,” he said.

To further reach out to the low-income market, Splash has repackaged its products in smaller or ready-to-dispense quantities.

Last year, Splash reported a net income of P298 million, up 6.6 percent from 2007 on the back of a 5.1-percent rise in revenues to P3.16 billion.

Splash is expanding its global footprint with plans to invest P50 million in a new subsidiary that will market and distribute its products in Indonesia beginning this year.