Monday, March 06, 2006

Splash taps Ernst & Young as financial advisor for P3-B IPO

Splash taps Ernst & Young as financial advisor for P3-B IPO
By Zinnia B. Dela Peña
The Philippine Star 02/26/2006


The Hortaleza family’s Splash Manufacturing Corp., the largest Filipino-owned personal care products manufacturer in the country, has tapped Ernst & Young as financial advisor for its planned P3-billion initial public offering (IPO) of shares targeted in the latter part of 2007.

Rolando Hortaleza, chairman and chief executive officer of the Splash Group of Companies, said proceeds from the offering will be used to bankroll expansion projects here and abroad to ensure long-term growth.

Hortaleza said the company is looking at new markets abroad like Thailand as next site for expansion. It is also keen on further expanding its presence in Indonesia in line with its bid to become a multinational firm.

The group has already penetrated 17 countries worldwide including a joint venture in Indonesia and distributorships in Malaysia, Vietnam, Singapore and the Middle East. It is also looking at entering the North American market.

On the homefront, the group intends to develop a manufacturing hub either in Clark or Subic.

Hortaleza said the group will launch two new brands and 5 VCO (virgin coconut oil) products this year to capitalize on the strong demand for natural food products or "nutraceuticals," which provide medical or health benefits and reduce the risk of chronic disease. Now in the market are Accuherb, a line of flavored VCO and Theraherb for its herbal tea products, and dietary supplement capsules.

He said the group is focused on promoting health and wellness, and that it is committed to spend more for advertising and promotion of its products. Around P600 million has been budgeted for its marketing initiatives. .

Last year, Splash reported a net income of about P400 million on revenues of P5.2 billion. For this year, the group expects to post an 18 percent increase in its revenues with Splash Pharmaceuticals contributing a significant amount.

Splash currently dominates the Philippines’ skin care business with its whitening products under the brandnames Extraderm, Maxipeel, Skin White and BioLink. Each generates about P1 billion in sales.

Together, the four account for 80 percent of the group’s total revenues.

Since its inception in 1985, Splash Corp, the mother company, has become a P5-billion enterprise. It now has a total of 350 direct employees plus 1,000 in affiliated companies.


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