MANILA - Listed Splash Corp. has signed an agreement with a Malaysian distributor that will allow the homegrown personal care manufacturer to tap a larger number of customers in the neighboring country.

In a statement, Splash said it has signed a distributorship deal with Carepro Marketing through wholly owned subsidiary Splash International, which will help it fortify its market position in Malaysia.

Carepro, a company with distribution coverage across a network of pharmacies, personal care stores, hypermarkets, supermarkets and beauty salons in western Malaysia, will distribute Splash's products including flagship brands Maxipeel and SkinWhite.

Splash said its products would initially be available in 10 selected supermarkets in capital Kuala Lumpur although the bigger plan is to make them available in 29 stores in the region.

"We are very optimistic about our Malaysian market. Our presence in West Malaysia is a very big move in increasing our market base," Splash Chairman and Chief Executive Officer Rolando B. Hortaleza said in the statement.

Currently, Splash products are sold in East Malaysia, particularly in Kota Kinabalu through GCH Retail (M) Sdn Bhd., Malaysia's biggest retailer, and through another Malaysian distributor, Rejoice Moments Sdn Bhd.

Splash said the partnership with Rejoice Moments and Carepro would enable it to tap the burgeoning population of countries that comprise the Association of Southeast Asian Nations (ASEAN) which Splash said has a growing disposable income.

"Our aim is to build brand equity for a strong presence in Malaysia. We want to become a strong player in the personal care industry in ASEAN, and Malaysia is a key component of our strategy," Mr. Hortaleza said.

Splash has established market presence in over 30 countries through distributors and importers. These countries include Algeria, Australia, Bahrain, Canada, Egypt, Hong Kong, India, Indonesia, Iran, Japan, Jordan, Korea, Kuwait, Lebanon, Malaysia, Nigeria, Oman, Pakistan, Qatar, Saudi Arabia, Singapore, Sudan, the United Arab Emirates, Vietnam and the United States.

Splash's profits slipped by almost a fifth to P101.3 million from January to June because of the 13% increase in production costs.

An AC Nielsen Retail Audit study showed that as of the second quarter, Splash's Maxipeel Exfoliant Solution continued to dominate its product category with an 83% market share, way ahead of main competitor RDL Exfoliant Solution.

Likewise, the Novaliches-based company's Skin White continues to be the leader in the whitening lotion category with a 29.4% share of the market from April to June, marginally up from the 28% share recorded in the first quarter. This, Splash said, came despite the declining trend of the total whitening lotion category.

Shares in the company grew by 1.66% or P0.05 to P3.05 on Friday. — Kristine Jane R. Liu, BusinessWorld