Spritzer’s 2Q net profit more than doubles

by **Cals** Thu 28 Jan 2016, 22:15

Spritzer’s 2Q net profit more than doubles

By Yimie Yong / theedgemarkets.com | January 28, 2016 : 6:40 PM MYT

KUALA LUMPUR (Jan 28): [size=16]Spritzer Bhd ([You must be registered and logged in to see this image.] Valuation: 0.80, Fundamental: 1.40) saw its net profit for the second quarter ended Nov 30, 2015 (2QFY16) surged 113.54% to RM7.41 million or 5.12 sen per share, from RM3.47 million or 2.52 sen a year ago, on higher sales and lower packaging material costs.

Revenue rose 13.43% to RM65.62 million, from RM57.85 million.

In a filing with Bursa Malaysia, Spritzer said the revenue growth was mainly due to increased sales for bottled water products and packaging materials and better average selling prices.

For the six months ended Nov 30, 2015 (6MFY16), Spritzer’s net profit was at RM14.7 million or 10.16 sen per share, up 45.11% from RM10.13 million or 7.38 sen per share a year ago,

Full year revenue rose 10.03% to RM132.28 million, from RM120.22 million.

Amid economic headwinds and challenges in the local economy, coupled with implementation of goods and services tax (GST) which further dampened consumer sentiments, Spritzer said the company is “cautiously optimistic” that the demand for bottled water will remain stable.

The company also said it plans to grow exports sales, which currently account for less than 10% of the revenue.

“We are mindful that the macroeconomic headwinds such as slower economic growth, low prices of our commodities and the weaker domestic currency, coupled with recent implementation of the goods and services tax (GST) will dampen consumer sentiments and dent consumption,

“Nevertheless, we remain confident that the demand for our bottled water products will be stable and the directors expect the group to perform satisfactorily in the financial year ending May 31, 2016 (FY16),” it added.

Spritzer closed 2 sen or 0.87% higher at RM2.31 today, for a market capitalisation of RM339.54 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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