By Edg Adrian A. Eva, Reporter

C&H Cosmetic Industry is targeting modest growth this year through expanded local distribution, a broader product lineup, and an aggressive push into export markets, even as spiraling oil prices driven by the Middle East conflict push operating costs higher.

"We are experiencing a crisis, but we try to take things positively," Mary Jane "Apple" R. Raca, co-owner and chief finance officer of the Lipa City-based manufacturing and distribution company, told BusinessWorld in a video call.

"To reach our targets, we aim to expand into various market channels, introduce our products in Europe and our mainstream market and expand our exports," she said.

Ms. Raca said the company has lowered its internal growth target from 20% last year to 10%, citing increased operating costs stemming from the war in the Middle East. At the same time, C&H is intensifying its focus on exports as the peso continues to depreciate against the US dollar, which makes Philippine goods more price-competitive for overseas buyers.

Founded in 2006, C&H began with beauty bar soaps financed by P5,000 in wedding cash gifts received by Ms. Raca and her husband, Henry. Since then, the company has diversified beyond cosmetics into household products, wellness offerings, and fragrances. It now operates with 24 distribution partners across the Philippines and exports to 18 countries, with the Middle East accounting for approximately 25% of total exports.

Ms. Raca said C&H is working to strengthen its footprint in Australia and Europe, where the company recently obtained distribution approval after a roughly five-year certification process. Securing access to the European market — one of the world's largest consumer markets — marks a significant milestone for the company. She described the European certification as welcome news, particularly as the company navigates the ongoing global oil crisis.

The business weathered the coronavirus pandemic, but Ms. Raca characterized the oil crisis — especially during its peak in March — as one of the company's most difficult stretches. Elevated fuel prices have driven up operating expenses, with logistics costs weighing on both growth and profit margins.

"We have 20 trucks that deliver across the Philippines, and there was a time when fuel prices surged to around P130 to P140 per liter. This has really been a challenging year for C&H," Ms. Raca said.

To manage rising costs, the company has raised prices, though Ms. Raca noted that its products remain affordable for most consumers.

Despite the headwinds, C&H intends to keep pursuing growth through export expansion and additional domestic distribution channels. Ms. Raca said the company is exploring opportunities to supply home care products to hospitals and hotels, while also developing new products to support its distributors and overall expansion.

The company is also seeking financial and technical assistance from government agencies to cushion the impact of the crisis and fund its growth plans. Ms. Raca called on the government to make micro, small and medium enterprise (MSME) loan programs more accessible and to expedite the release of funds so businesses can better manage elevated costs. MSMEs like C&H account for the overwhelming majority of Philippine businesses and a significant share of employment, making their ability to absorb cost shocks and compete abroad a broader economic concern. She added that broader improvements in economic conditions would help Philippine MSMEs attract investors and compete more effectively in export markets.

The United Nations Development Programme (UNDP) has identified small enterprises as among the groups most vulnerable to economic spillovers from the Middle East war, alongside low-income households, informal workers, and migrants. The agency estimated that the crisis could reduce economic output in the Asia-Pacific region, including the Philippines, by as much as $299 billion and push 8.8 million people into poverty.