PETALING JAYA: Spritzer Bhd
’s operating outlook is expected to be supported by strong demand and market expansion.
AmInvestment Bank Research maintained its earnings forecast for the financial year 2024 (FY24) to FY26 following a recent analyst briefing.
The management highlighted that sales at each outlet are growing at an accelerated pace, driven by increased tourism activities.
“For FY24, management has earmarked a total capital expenditure (capex) of RM70mil to RM80mil. Year-to-date, the group has added two new production lines with one each at Taiping and Yong Peng bottled water plants.
“Due to strong demand, the group will add another line in Taiping, which is estimated to increase current capacity of 1.2 billion litres per annum by 5%,” the research house said in a report.
AmBank Research said given that Spritzer’s operating cash flow was insufficient to fully cover both dividend payments and capex, the group planned to fund them via borrowings.
“While gearing is expected to increase slightly over the next few quarters, net gearing ratio is projected to remain comfortably below 20%,” it added.
