Spritzer’s 2Q net profit down by 34% y-o-y

by **Cals** Fri 24 Jan 2014, 19:34

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Friday, 24 January 2014 17:51

KUALA LUMPUR (Jan 24): Spritzer Bhd reported lower net profit for its second quarter ended 30 November 2013, at RM3.4 million, down 34% from RM5.1 million in the previous year.

However, revenue for the quarter rose by 18% year-on-year (y-o-y) to RM55.2 million from RM46.7 million.

The group had attributed the lower profits to higher operating costs during the quarter as transportation, salary and advertising expenses were higher as well as higher raw material price.

“The weak Malaysian currency had caused an increase in the prices of PET resin consumed,” said the group.

For the six months to November 2013, net profit improved to RM8.6 million from RM8.3 million last year, while revenue increased to RM110.8 million from RM 94.3 million.

Going forward, the group expects its performance to be favourable for the balance of its current financial year, despite headwinds.

“Our earnings have been and will continue to be affected by the recent implementation of minimum wage, the extension of the retirement age, the various subsidy cuts such as the recent electricity tariff hike and the fiscal tightening measures introduced by the Malaysian government.

“To mitigate higher costs of doing business, we will continue with our various efforts to improve our operations efficiency and productivity so as to stay competitive in the bottled water industry,’ said the group, adding that it will continue with its efforts to maintain revenue growth.