MANILA - Splash Corp reported a sharp drop in earnings on increased costs and operating expenses despite higher revenues.
In a regulatory filing, the personal care manufacturer said its net income declined 62 percent to P4.06 million in the July to September period from P10.7 million a year ago.
This dragged net income to P15.12 million in the nine-month period ending September, 77 percent lower than the P66.63 million in 2011.
Net sales grew 31 percent to P996.65 million in the third quarter from P762.52 million last year, bringing nine-month sales to P2.53 billion, up 7 percent from P2.37 billion in 2011.
"The increase in net sales mainly came from increase in direct sales and from the food business," said Splash.
In the nine-month period, contribution of the direct selling business went up 35.52 percent to P272.55 million from P201.12 million in 2011, while sales from its food business surged to P204.89 million from P32.38 million previously.
Sales from domestic operations fell 5 percent to P1.71 billion from P1.80 billion in 2011. International sales were flat at P338.79 million.
Higher sales and the sales mix pushed cost of goods sold by 9.4 percent to P1.14 billion from P1.03 billion last year.
Increased spending for marketing and selling expenses lifted operating expenses jumped 6.8 percent to P1.35 billion from P1.27 billion in 2011.
Splash is the company behind the brands Kolours, Vitresse, Extraderm, Maxi-Peel, Skin White, Biolink, and Theraherb VCO.
Last year, Splash marked its foray into the food business with the acquisition of an 80-percent stake in Barrio Fiesta Manufacturing Corp. It recently signed a share purchase agreement for the acquisition of 100 percent of Moondish Foods Corp.
source: interaksyon.com
