Philippines MLM Splash Profits Up 46% in Q1

 

Philippines based personal care direct selling Splash Corp. has started the year strong as it grew its earnings nearly half in the first quarter, coming off a net income plunge in 2014.

Splash said net income in the first three months of the year rose 46% to P49 million from P38 million in the same period last year.

“Thus net income for the first quarter of 2015 had already exceeded the net income for the whole year of 2014 by more than four times,” the homegrown beauty and personal care products maker said.

For full year 2014, the company’s net profit sank 84% to P12 million from P73 million in 2013 due to the absence of a P70 million extraordinary gain from the sale of a non-core asset.

“Without the extraordinary gain in 2013, net income would have increased four-fold,” Splash said.

Sales last year amounted to P3.5 billion, up 4% from P3.4 billion in 2013 while sales for the first quarter of 2015 grew 15% to P957 million compared to P832 million in the same period a year ago.

Splash said sales in 2014 from its Philippine operations increased 11 percent year-on-year while that from international operations went up three percent.

Food sales, however, were flat as the business segment remained in its investment phase, the company said.

For the first quarter of the year, Splash said total sales of its personal care segment grew 18 percent, with Philippine operations contributing 21 percent growth, international operations four percent and direct sales five percent.

“The growth in sales of personal care products more than made up for the decline by 10 percent of the sales of the foods segment,” the firm said.

Splash is the company behind flagship brands SkinWhite and Maxi-Peel. The personal care manufacturer is also expanding its product portfolio with the introduction of new variants for Extract and Extraderm.

Splash said its flagship personal care brands continued their strong showing in international markets as sales in investment markets such as Africa and Middle East increased 92 percent and 13 percent year-on-year, respectively.

From a leadership position in the Philippines, the listed firm is venturing into high-growth markets in Southeast Asia, Africa, the Middle East and North America.