Spritzer Bhd (KLSE: 7103.KL) is a food and beverage company listed on Bursa Malaysia, the stock exchange of Malaysia. Spritzer manufactures and distributes natural mineral water, distilled drinking water, and other flavored drink products.
For investors who are fans of Asia-focused consumer goods companies such as Nestle (Malaysia) Berhad (KLSE: 4707.KL) and Thai Beverage Public Company Limited (SGX: Y92), Spritzer may be a good addition to their watch list.
With this in mind, I will like to share a quick introduction of Spritzer.
Starting with the basics
Spritzer is one of the largest producers of mineral water in Malaysia with an estimated market share of 40%.
The company distributes its water products mainly under brands such as Spritzer and Cactus. It has two mineral water plants and a drinking water plant in the towns of Taiping, Yong Peng, and Shah Alam in Malaysia. The plants have a total of 15 bottled water production lines and an annual production capacity of about 600 million litres of bottled water.
Spritzer’s main geographical market is Malaysia, which accounted for more than 90% of the company’s revenue in 2016. The company also distributes bottled water products in Guangzhou and its surrounding areas.
Sprinkle in some numbers
In my view, no introduction is complete without financial numbers. As such, I would like to share some key metrics about Spritzer to give investors a more rounded view of the company.
We will start with revenue. From the fiscal year ended 31 May 2013 (FY2013) to the year ended 31 December 2017 (2017), Spritzer grew its top-line by 55.4% from RM 201.9 million to RM 313.8 million.
Next, over the same period as above, the company grew its profit after tax by 32.8% from RM 19.2 million to RM 25.5 million. Yet, its EPS (earnings per share) declined from RM 0.147 to RM 0.138 during the period due to an enlarged share count.
Shareholders of Spritzer would have benefited from growing dividends too. The company’s dividend actually increased by 37.5% from RM 0.04 in FY2013 to RM 0.055 sen in 2017. The increase in the company’s dividend per share is impressive given that its sharecount was up by about 40% during the period.
In all, Spritzer is an F&B company in Malaysia. Income investors may want to dig in deeper, given that its has been growing its revenue, profit, and dividends over the past few years.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn't own shares in any companies mentioned.