MANILA, Philippines — Splash Corporation has raised P1.12 billion from a corporate notes facility agreement to finance the expansion of its health and beauty business as well as its newly acquired food venture.

In a disclosure to the Philippine Stock Exchange, Splash said the agreement was entered into with note holders Security Bank Corporation, Robinsons Bank Corporation, and Security Bank Corporation Trus Division.

Security Bank Trust Division was also the facility agent while SB Capital Investment Corporation was the sole arranger for the notes facility.

Splash Corporation posted a 10 percent growth in net income to P66.6 million for the first nine months of 2011 from P60.66 million in the same period last year on the back of higher revenues of P2.37 billion.

"The 7.9 percent increase in sales and the corresponding 2 percent increase in gross profit were negated by the increase in selling and general administrative expenses," Splash said.

Splash reported a slight decline in net income to P10.7 million for the third quarter alone from P11.9 million for the same period last year.

Sales from domestic operations reached P1.8 billion for the nine-month period while sales from international and direct selling business operations reached P337 million and P201 million, respectively.

"Domestic operations posted a drop in operating income for the first nine months amid strong competition but this was offset by the increase in income from the international operations and direct selling business," the company said.

Splash also reported sales of P32.38 million in August and September for its food business. Splash acquired 80 percent of Barrio Fiesta Manufacturing Corporation in August.

Splash said the company's core brands maintained its leadership position during the nine-month period based on the report of AC Nielsen.

"We remain optimistic that we will end the year 2011 with modest improvements despite difficult market conditions," Splash president Eric Domagas said.