Spritzer to deliver strong quarterly earnings

by **Cals** Tue 22 Jul 2014, 12:55

Spritzer to deliver strong quarterly earnings
Business & Markets 2014
Written by Liew Jia Teng of theedgemalaysia.com
Tuesday, 22 July 2014 09:09

KUALA LUMPUR: Spritzer Bhd, whose share price marched to a 14-year high yesterday, is expected to deliver a stellar set of financial result for its fourth quarter ended May 31, 2014 (4QFY14), having benefitted from the water cuts earlier this year that lifted demand for bottled drinking water.

Spritzer’s revenue may reach RM250 million in the current financial year ending May 31, 2015 (FY15), said Mercury Securities Sdn Bhd, which tracks the stock. The research house also forecasts a revenue of RM209.1 million in FY14, generating a net profit of RM19.2 million, or 14.22 sen per share.

For the nine-month period (9MFY14), Spritzer recorded revenue of RM170.5 million and net profit of RM14.7 million.

The improved results were attributed to better bottled water sales arising from the hot and dry weather conditions.

In an exclusive interview with The Edge weekly in March this year, Spritzer executive director Dr Chuah Chaw Teo had said that the group expects brisk sales amid the water rationing exercise in the Klang Valley, which would be reflected in its FY14 results.

Last month, Deputy Energy, Green Technology and Water Minister Datuk Seri Mahdzir Khalid reportedly said that the water rationing in the Klang Valley may return if the water at the Sungai Selangor dam drops to a worrying level due to the El Nino weather phenomenon.

Year-to-date, the share price of Spritzer had climbed steadily by 24.58%. The counter closed at RM2.23 yesterday, up 11 sen or 5.2%, with 825,600 shares changing hands.

According to Bloomberg data, Spritzer is currently trading at 14.2 times price-earnings ratio, and it is expected to trade at 13.9 times going forward.

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This article first appeared in The Edge Financial Daily, on July 22, 2014.