Personal care direct seller and food producer Splash Corp in the Philippines grew its first semester net profit by 133% year-on-year to P93 million led by a double-digit growth in sales of personal care products.
Revenues from the domestic sale of personal care grew by 17% while international sales likewise expanded by 19% year-on-year, the company reported to the Philippine Stock Exchange on Monday. Gross profit for the six-month period stood at P1.1 billion, 20% higher than for the same period last year while operating profit went up by 64% year-on-year to P110 million.
Stronger cash flow was attributed to higher sales and profits and improvement in working capital utilization.
Splash said personal care flagship products under the Maxipeel brand increased the base of new users through new packaging and advertising. The company also reported that SkinWhite – riding on strong consumer acceptance of instant whitening solutions – continued to dominate the Philippine market in this segment. Flagship personal care brands also continued their strong showing in international markets including in investment markets including Africa, Middle East, and Indo-China, the company said.
Splash also said it continued to improve the management of its account receivables for its direct sales business. It plans to roll out by the second semester of 2015 a new on-line system that will enable closer monitoring of all aspects of the operations and transactions of the direct sales network. For direct selling, the company also noted a strategic shift in the distribution model which is seen to result in improvements in cost efficiency and working capital utilization alongside an enhanced income scheme for distributors to motivate them to sell more and earn more.