Local personal care manufacturer Splash Corp. said net income in 2015 surged 13 times to P160 million from just P11.6 million in 2014 on higher sales and marginal increases in costs.
Splash said in a statement sales grew eight percent to P3.78 billion from P3.49 billion in 2014, with the increase coming mostly from the personal care business for both here and abroad.
Sales from domestic operations rose 12 percent while those of the international business increased 13 percent.
“The growth of the personal care business in international operations was mostly through its focus on naturals, capitalizing on the growing trend of consumers toward organic and natural-based products. It continues to build its distribution base, focusing on markets where the retail landscape is still developing, like Nigeria in Africa and Indonesia in Asean,” Splash said.
The group’s food business under Barrio Fiest Manufacturing Corp. also posted a three percent growth in sales to P36 million. Net income stood at P10 million.
“It improved all aspects of operations in the Philippines, particularly its ability to service and deliver customer orders. It also decreased selling expenses by 14 percent by concentrating on accounts that have long term value, and negotiating better terms,” Splash said.
Splash introduced new products in the US market, consistent with a strategy of expanding the portfolio of products under the Barrio Fiesta brand.
Splash commercialized products including cooking vinegar, dried fish and dried taro leaves in North America and the Middle East.
Revenues from direct sales declined 31 percent as Splash continued to transform its business model for long term viability.
Splash is primarily engaged in the manufacturing and distribution of beauty and pharmaceutical products in the Philippines and abroad.
The company in 2009 created a new revenue stream by going into the direct selling business.
It also marked its entry into the food business with the purchase of an 80 percent equity in Barrio Fiesta and the acquisition of Moondish Foods Corp. in September 2012.
Share price of Splash on Wednesday jumped 6.2 percent to close at P2.91.
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