Tourism boom, hot weather trends to anchor Spritzer performance

PETALING JAYA: Public Investment Bank (PublicInvest) Research expects Spritzer Bhd to benefit from accelerating tourism, rising health-conscious consumer trends and hot weather from the El Nino phenomenon.

PublicInvest Research expects this robust consumption momentum to be further bolstered by Spritzer’s effective branding, an established distribution network, and expanding footprints in its hotel, restaurant and cafe channels.

To capture this growing demand, Spritzer is undertaking a structured expansion to increase the company’s annual production capacity from 1.25 billion to 1.3 billion litres.

This future growth will be supported by continuous automation and operational efficiency enhancements, measured pricing adjustments to offset rising input costs and new product rollouts.

Notably, the rollouts include bulk packaging formats and an expanded Sparkling lineup.

The research house pointed out that the strong outlook followed an exceptional performance from the company in the latest second quarter ended June 30 this year (2Q26).

In 2Q26, Spritzer delivered its strongest quarter-to-date, with the company’s core net profit surging 54.6% year-on-year or y-o-y and 65.3% quarter-on-quarter or q-o-q to RM36.6mil.

The company’s revenue rose 23.5% y-o-y to RM203mil, driven by higher sales volumes and increased average selling prices or ASPs from a favourable product mix heavily favouring its flagship Spritzer brand.

Backed by economies of scale and ongoing operational excellence, gross profit and core net profit margins expanded significantly to 23.4% and 18%, respectively, PublicInvest Research noted in a recent report.

The company’s stellar performance pushed cumulative 1H26 earnings ahead of expectations.

In addition, this represents 54% of PublicInvest Research’s and 56% of consensus full-year forecasts.

As a result, PublicInvest Research has reiterated its “outperform” rating on Spritzer.

The research house also raised the target price to RM3.70 a share from RM3.30 previously.

Moreover, the valuation is pegged to 18 times price-to-earnings ratio applied to its FY27 earnings per share forecast of 20.5 sen.

Following the robust quarter, earnings forecasts for FY26 to FY28 have been upgraded by 10% to 12%, reinforcing confidence in Spritzer’s highly sustainable earnings trajectory.