MANILA, Philippines - Food company and personal care manufacturer Splash Corp. posted a hefty improvement in first semester profits on the back of strong sales and lower expenses.
In a disclosure, Splash said net income attributable to equity holders of the parent firm surged 46 percent to P42.12 million during the period from P28.86 million a year ago as sales improved 5.1 percent to P1.7 billion.
The substantial profit gain “came mostly from the increase in revenues and coupled with a five-percent decline in operating expenses,” Splash said.
“The revenue growth came from the 22-percent growth in foods division, mainly from international operations, and the 11-percent growth in the personal care segment,” it added. The uptick more than offset the 45-percent decline in revenues of the direct selling business.
Although second quarter sales were higher compared with first quarter turnover, net income in the April to June period slipped amid higher spending on advertising on flagship brands SkinWhite and Maxi-Peel, and foreign exchange loss on dollar-denominated receivables.
“The outstanding results of the first semester validate the steps taken by Splash over the last few years to transform its operations, enhance its value chain, and step up its innovations,” said Splash executive vice-president and chief finance officer Vicci Tomas.
“We can only expect even better results for Splash in the coming years,” Tomas said.
Specifically, Splash Foods International’s turnover surged 50 percent, led by an expanded distribution network in North America, Middle East, Europe and Australia. It launched Barrio Fiesta Mixes in Bulalo, Tinola and Sinigang variants in the US in April.
“By redirecting its focus toward high-margin products coupled with the improved efficiencies in the logistical, commercial, and manufacturing operations, Splash is optimistic that it will continue to sustain its upward momentum in the Philippines moving forward,” the company said.
For its part, the personal care international sales rose 16 percent, led by the whitening and exfoliants category that grew by 117 percent and six percent, respectively.
The product portfolio further expanded with the introduction of new variants for Extract and Extraderm, Splash said.
Topline revenues of the Personal Care Philippines improved 11 percent, with core brand SkinWhite growing 16 percent and sales of the SkinWhite Power Whitening lotion expanding by at least 150 percent.