GEORGE TOWN (June 18): Spritzer Bhd (KL:SPRITZER) said it will spend between RM90 million and RM100 million in 2025 to upgrade and expand its production.

The capital expenditure will help the company, mostly known for its bottled mineral water, keep up with rising consumer demand, widen its marketing networks, bolster its branding and improve operational efficiencies, chief executive officer Kenny Lim told The Edge in an interview.

"We are well positioned to cater to an improved consumer market," Lim said. "We believe we can sustain a double-digit sales increase this year.”

Spritzer, based in Taiping, Perak, is able to produce up to 1.25 billion litres of bottled water annually. The company’s revenue grew 18% in 2024 from a year earlier.

Investors also liked Spritzer, taking its market capitalisation above RM1 billion for the first time ever in January before the global tariff turmoil. The stock has rebounded more than 10% from its lows in April.

Spritzer is now sharpening its focus on Singapore to raise its market share there. The company is targeting growth in both “the on-trade and off-trade segments through our key distributors dedicated to different channels," Lim said.

Back home, resilient domestic demand and tourist arrivals are expected to support Malaysia's economy facing risks from global trade tensions and weakened consumer sentiment, he noted.

While the cost of raw materials had been relatively stable, Spritzer would have to contend with higher minimum wage, additional pension contributions for foreign workers and the potential increase in electricity tariff, he flagged.

In the most recent quarter ended March 31, 2025 (1QFY2025), Spritzer’s net profit rose 27% to RM19.67 million from a year earlier while revenue was up 9.8% year-on-year to RM148.28 million.