Splash Corp posts robust sales

Despite a slowing economy, many Filipinos are spending on skincare products as evidenced by the continued robust sales of Splash Corp.’s SkinWhite and Maxi-Peel bands, which surpassed the P1-billion mark.

This goes to show that Filipinos are turning to products to lighten their skin color, swayed by advertising and TV soaps featuring glamorous actresses or models with smooth, creamy and glowing complexions.

SkinWhite registered around P1 billion in sales in the period January to October 2008 while Maxi-Peel hit the P1-billion mark in terms of sales in the first 11 months of the year.

According to AC Nielsen’s report for September 2008, SkinWhite captured a 27-percent and 43-percent share of the local whitening lotion and soap categories, respectively.

Splash reported that Maxi-Peel’s newly-launched exfoliant cornered a lion’s share of the liquid beauty product segment with the CD market as its major clientele. The company also introduced more variants to its exfoliant solution with the introduction of the cream, soap and lotion.

Given SkinWhite’s and Maxi-Peel’s stellar performance, Splash, the country’s largest Filipino-owned beauty and personal care maker owned by the Hortaleza family, is expected to post a stronger net profit this year.

In the nine months ending September 2008, Splash reported a net income of P165.85 million, up 6.2 percent from P156.12 million the same period last year. Sales rose 17.9 percent to P2.21 billion from P1.875 billion, mainly coming from its skin care products.

The skin care segment accounted for 67 percent of sales and 71 percent of gross profits during the period under review.

With the combined 32.5-percent market shares of Skin White, Extract and Biolink, Splash leads the skin whitening lotion category as of September this year.

Splash’s Kolours Premium Home-Use hair dye, meanwhile, continues to lead in the premium hair dye category with a 61-percent market share.

Gross profit improved 18.4 percent as revenue growth outpaced the increase in production costs. However, net operating income declined by 27.8 percent mainly due to the 319-percent rise in operating expenses.

As a result, earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to P142.2 million, lower by P56.3 million due to a decrease in net operating income.

As of end-September this year, Splash had assets of P3.4 billion, up 88.5 percent due to proceeds of the IPO in November 2007 which virtually remained intact. These funds will be used for acquisitions of personal care and health and wellness brands and for building activities.

Splash products are currently spread in 1,032 outlets of leading groceries and supermarkets, with 23 third-party distributors serving 26,102 retail outlets. Overseas, its products are already seen in 25 countries across the African, Asian, and North American continents. This international distribution contributes to 15 percent of total net sales.

As of last year, the company has expanded its international operations with the signing of distribution agreements with companies in the United States, Malaysia, Brazil, Hong Kong, and Macau.