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Friday, April 18, 2014

SPH: Higher sales, lower costs lift Splash's 1Q net income

Higher sales and lower costs boosted Splash Corp’s profit in the first quarter of the year.

In a disclosure to the Philippine Stock Exchange, the homegrown personal care manufacturer said it netted P32.9 million in the three-month period, up 157.6 percent from last year’s P12.7 million.

Sales amounted to P832 million, an increase of 8.7 percent year-on-year.

Its local personal care business rose 14 percent on the back of advertising efforts and improved sales from key accounts. International personal care sales expanded by nearly a third on increasing revenues from Africa, while international food sales climbed by a quarter on higher sales in North America and the Middle East.

"This sharp rebound in sales and net income validates the steps taken by Splash in 2013 to strengthen its operations and profitability. A key step that Splash took was to strengthen the relationship with certain key accounts to ensure mutually beneficial terms of engagement. This resulted in a more efficient inventory management and promo fund spending for both parties," the listed company said.

Last year, Splash’s net income slid 21 percent to P73 million from P92 million in 2012 on the back of a five percent drop in sales, as the personal care industry experienced flat growth or declines in various categories.

Splash is the company behind the brands Kolours, Vitresse, Extraderm, Maxi-Peel, Skin White, Biolink, and Theraherb VCO.

In 2011, Splash marked its foray into the food business with the acquisition of an 80-percent stake in Barrio Fiesta Manufacturing Corp. A year later, it took over Moondish Foods Corp, a manufacturer of canned ready-to-eat Filipino products.

Source: Interaksyon

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