Splash Corp allots P37.9 million for capex this year

MANILA, Philippines - Local personal care giant Splash Corp. is allotting P37.9 million for its capital expenditure program this year, mainly to acquire new equipment.

In a filing with securities regulators, Splash said the bulk of the capital budget or P23 million will be used to upgrade production facilities while the balance of P14.9 million will go to acquisition of computers and related productivity tools.

Splash is beefing up its presence nationwide to further solidify its leadership position in the multi-billion peso industry. It is looking at opportunities in Cebu, Davao, Cagayan De Oro, Dagupan, Batangas and Pampanga.

Splash is also expanding its operations abroad, particularly in Asia with its new distribution offices in Malaysia and Indonesia, and eventually in Vietnam.

Currently, Splash products can already be found in over 45 countries either through a formal or informal channels. These countries includes Australia, Bahrain, Canada, Hong Kong, India, Iran, Japan, Jordan, Korea, Kuwait, Lebanon, Oman, Pakistan, Qatar, Saudi Arabia, Singapore, United Arab Emirates, Vietnam and the United States.

Splash posted a net income of P48.09 million in the first half this year, down 52.5 percent from the previous level on higher operating expenses. Net sales likewise dropped 5.7 percent to P1.38 billion due to lower sales generated from new products launched and the rationalization of some products during the last 12 months.

Of the total year-to-date sales, domestic operations accounted for 83 percent or P1.2 billion while 14.9 percent or P205 million came from overseas operations.

While there was a significant improvement in the cost of goods sold due to a more favorable sales mix, this was not enough to cover the increase in operating expenses which led to the decline in operating income by 40.4 percent. Operating expenses rose 9.45 percent to P747.78 million.

Splash continued to further strengthen its dominance in the exfoliants category, through Maxi-Peel.

Maxi-Peel Exfoliant Soap further cemented its leadership in the exfoliant soap category, increasing its market share from 57.38 percent to 64 percent. It is also the leader in the exfoliant lotion category, accounting for 1.1 percent of the P3.4 billion total lotion industry.

Skin White remains the market leader with 41.6 percent share as of May 2010. However, Belo, Block and White, Silka and Others Whitening Scientific, combined, have grabbed five points since last Feb. 2010. Various advertising and activation activities were implemented to recover lost shares or arrest its further decline.