MANILA, Philippines - Cosmetics retailer HBC, Inc. sees revenues going up by nearly half to P2 billion this year, cashing in on the spending boost during election season, company officials said late last week.

The company will allot P50 million to open 10 company-owned stores this year to take advantage of the increasing patronage of beauty products. Another 20 stores will be opened by franchisees this year.

Sales will increase “from P1.3 billion last year to P1.8 billion minimum,” Noel P. Manucom, chief operating officer of HBC, said in an interview. “The P1.8 billion is only for local retailing and we also have exports and international stores. All in all, it will bring the total revenues to P2 billion.”

HBC Chairwoman and Chief Executive Rosalinda A. Hortaleza said: “By 2012, the company conservatively projects to expand its network to 500 stores, a mix of company-owned, franchised and ‘store within a store outlets.’”

HBC has so far opened 217 branches, of which 10 are franchised, since starting operations in 1993. It has stores in Singapore, Bahrain, Oman, Los Angeles, Las Vegas and 17 outlets in California’s Seafood City chain of Filipino-owned supermarkets.

The firm will spend P200 million to P250 million in the next three years to open company-owned retail outlets, Mr. Manucom said.

HBC is also seeking to tap overseas Filipino workers who would like to start their own businesses.

Sales of HBC rose by 11% to P1.335 billion last year, bucking the projected 8% sales growth of the entire beauty industry.

Profits went up by 32% to P29.3 million last year from P22.13 million in 2008.

“We expect [sales] to grow especially now that it is an election year.

We expect money to trickle down from the candidates,” Mr. Manucom said.

HBC, a retailer of health, beauty, personal, and homecare products and services, accounts for about 4% of the P35-billion health and beauty industry in the country.

Filipino consumers have “matured” in terms of beauty products, HBC Marketing Manager Allue Krisanne A. Hortaleza said.

“They do not ask for simple makeup. Now it has to have [sun protection factor] and vitamins. They are more complex,” she added.

Expansion will continue abroad, HBC executives said. So far, 70% of the stores are located in the Philippines. “There are a lot of Filipinos [overseas],” Ms. Hortaleza, the HBC chairwoman, said.

Moreover, other nationalities are starting to buy “natural” products made from calamansi, papaya and cucumber, she said.

“We will remain as a health beauty and personal retainer. We will focus on our core [business],” she said.