Splash extends gains in sales and profits in 1st half

Homegrown personal care and food marketer, Splash Corporation further grew its sales and net income
for the 1st semester of 2015, extending the gains it registered last year and for the first quarter of 2015.
Net income grew to Php93 million, a growth of 133 percent over the figure for the first semester of
2014. The growth in net income came on the back of stronger sales in personal care and food
businesses. Revenues from personal care Philippines grew by 17 percent while personal care
International grew by 19 percent compared to first semester sales last year. Total food sales grew by 8
percent for the same period.
Gross and operating profit improved significantly. At Php1.1 billion, gross profit is 20 percent higher than
for the same period last year. Operating profit of Php110 million is 64 percent higher than last year.
Stronger cash flows were made possible by higher sales and profits and improvement in working capital
utilization. Cash generated from operations amounting Php416 million for the first semester is only
Php74 million short of total cash generated for the whole of 2014.
Splashs personal care flagship products Maxipeel, which increased its new-user base through new
packaging and advertising, and SkinWhite, with strong consumer acceptance of its benefit of instant
whitening, continued to sell strongly and maintained their dominance of the Philippine market. Splashs
flagship personal care brands also continued their strong showing in international markets including in
investment markets including Africa, Middle East, and Indo-China.
In Food, the newly introduced Barrio Fiesta product lines to the US market like canned meals, specialty
vinegars and recipe mixes, performed strongly. In the Middle East, the growth of the distribution
network for Splash foods contributed to higher sales.
In the Philippines, Splash personal care and food products are distributed by Prime Global distribution
business alongside products from other principals. Prime Global also had a strong year with revenues
growing by 61 percent in the first semester versus the same period last year.
Splash continued to improve the management of its Account Receivables for its Direct Sales business. It
is on track to rollout the Enhanced Splash Direct Sales On-Line System in the second semester of 2015 to
enable closer monitoring of all aspects of the operations and transactions of the direct sales network.
Also expected to further improve the financial picture of Direct Sales is the strategic shift in the Splash
distribution model which will result in improvements in cost efficiency and working capital utilization,
and an enhanced income scheme for dealers to motivate them to sell more and earn more..
Splash Corporation provides pioneering and high-quality products and services that cater to the
universal desire of people to look good and live well. From a leadership position in the Philippines, it is
successfully venturing into high-growth markets in Southeast Asia, Africa, the Middle East and North
America.
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