KUALA LUMPUR (Aug 27): Spritzer Bhd (KL:SPRITZER) saw its second-quarter net profit surge 55.6% to a fresh record high, as higher sales volumes and average selling prices of bottled water lifted earnings despite rising costs.

Net profit for the three months ended June 30, 2026 (2QFY2026) rose to RM35.35 million from RM22.72 million a year earlier, while revenue increased 23.5% to RM202.98 million from RM164.40 million, according to a Bursa Malaysia filing on Thursday.

The improvement was driven mainly by Spritzer's core manufacturing business, where segment revenue rose 23% to RM195.33 million on higher bottled water sales volumes and average selling prices. Sales of bottled water and related products alone increased 24% to RM194.55 million.

The stronger sales helped offset an 18% increase in cost of sales, driven by higher manufacturing costs amid rising raw-material prices attributed to geopolitical tensions. Other operating expenses rose 13%, mainly due to higher selling and distribution expenses as well as general and administrative costs.

Spritzer did not declare an interim dividend for the quarter. As at end-June, the group had RM35.99 million in cash and bank balances against total borrowings of RM31.18 million.

For the six months ended June 30, 2026 (1HFY2026), Spritzer's net profit rose 36.1% to RM57.69 million, while revenue increased 15.4% to RM360.96.

"The group's performance is expected to remain supported by stable demand for its bottled water products in key domestic markets, with tourism activities providing further support for sales," Spritzer said.

The group said its brand equity, established distribution network and ongoing marketing initiatives would also underpin demand as it seeks to respond to changing consumer preferences for higher-quality and healthier beverage choices.

Spritzer nevertheless cautioned that the operating environment for the rest of FY2026 remains challenging and uncertain amid geopolitical tensions and evolving global trade conditions. 

Although Middle East tensions eased in June, the group said developments remain fluid and continue to pose risks to global energy markets and supply chains.

"These factors have contributed to volatility in raw material prices, logistics costs and other input costs, with the group already experiencing significant increases in the cost of certain raw materials," it said.

The group said it will also continue investing in automation and process improvements, alongside selective capital expenditure to support production capacity and longer-term growth. It plans to increase its use of recycled PET and explore more environmentally responsible packaging solutions.

Shares of Spritzer touched a record high of RM3.27 in intraday trading on Thursday before closing three sen or 0.9% higher at RM3.22, valuing the group at about RM2.06 billion. The counter has gained more than 21% year to date.