Spritzer’s 1Q net profit jumps 28%

-A +A

KUALA LUMPUR: Bottled water manufacturer Spritzer Bhd recorded a 27.5% increase in its first quarter net profit ended Aug 31, 2014 (1QFY15) to RM6.67 million or 4.91 sen a share, from RM5.23 million a year ago, on higher sales volume, better average selling price, as well as the reduction in packaging material cost.

Revenue grew 12.1% to RM62.38 million from RM55.66 million, which the group attributed to higher sales volume as a result of prolonged dry weather, as well as increase in average selling prices.

On a segmental basis, revenue for its manufacturing division increased by 13.3% to RM59.03 million, while the trading division’s revenue slipped 5.6% to RM3.4 million on reduction of quantities sold.

“To mitigate the escalating 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 Spritzer in a statement, adding it will also continue with its efforts to grow its revenue and improve its average selling prices in both the domestic and export markets.

The group said the demand for bottled water remains firm, adding it expects the performance to be satisfactory for the financial year ending May 31, 2015.

Spritzer closed 1 sen lower at RM2.04, with a market capitalisation of RM276.3 million.