KUALA LUMPUR (Feb 28): Bottled water manufacturer Spritzer Bhd’s net profit for the fourth quarter rose 17.27%, driven by increase in bottled water sales volume and average selling prices, as well as reduction in cost of raw materials.

Net profit for the three months ended Dec 31, 2023 (4QFY2023) increased to RM13.21 million or 4.15 sen per share, from RM11.27 million or 3.57 sen per share a year earlier, while revenue rose 15% to RM125 million from RM108.7 million.

For the full FY2023, the group said its net profit jumped by 33.87% to a record high of RM49.49 million or 15.54 sen per share, against RM36.97 million or 11.75 sen per share in FY2022.

This was attributed to strong sales of bottled water products on robust demand, strong recovery in tourism activities and the hot weather environment.

Revenue for the full year rose 13.24% to RM490.68 million from RM433.3 million.

The group also proposed a first and final dividend of 5.5 sen per share for FY2023, which is subject to the shareholders’ approval. The dividend is higher than 4.17 sen per share paid for FY2022 (based on enlarged share base post-bonus issue).

Looking ahead, Spritzer plans to use more recycled PET (Polyethylene Terephthalate) in the manufacturing process of their bottles.

“We will progressively increase the content of recycled PET in the manufacture of our Spritzer bottles and continue to introduce sustainable packaging alternatives for our bottled water products.

“We are also encouraged by the growth of Spritzer Sparkling and carbonated mineral water products. The new Spritzer Icon bottle has also been well received by the on-trade or HORECA (hotel, restaurant, café) channel, giving Spritzer another good growth channel,” it added.

Spritzer closed up five sen or 2.4% at RM2.13 on Wednesday, giving the group a market capitalisation of RM680.14 million. The counter has risen over 15% this year.