Osotspa announces net profit of THB 1.599 billion or 11% increase in the first half of 2019. The company enters vending machines market to boost beverage sales further. The interim dividend payment at

Osotspa PCL. (OSP) announced impressive first half-year operating results. The company had generated THB 1.599 billion in net profit amounted to an 11% growth due to the sales growths of all products in the domestic beverage segment, the efficient cost management and the launch of new products. It has invested in a vending machines business with an aim to increase its distribution channels. It also declared a payment of an interim dividend at THB 0.35 per share

Mr. Petch Osathanugrah, Chairman of the Executive Committee and CEO, Osotspa PCL. (OSP), a leading Thailand-based consumer products manufacturer and distributor,revealed that, thanks to the growths posted for the beverage and personal careproducts and the continual cost management, Osotspa’s H1 earnings have grown by 11% Y-o-Yto THB 1.599 billion. He noted that the earnings figure before the provision made for employment benefits under the new Labour Protection Act is THB 1.675 billion, a 16% Y-o-Y surge.

“The recently-launched Osotspa Innovation Centre, built at a cost of THB 46 million and equipped with prominent beverage production technologies, reflects our commitment to research and development projects to create products and materials that are safe and promote the consumer’s health. The centre is allowing us to develop products that respond effectively to consumption demand, and clearly it has contributed to the growths in our beverage and personal care segments over the previous quarter”, said Mr.Petch.

Aggressive marketing campaigns and the introduction of new products that met the consumer’s demand led to the growth in the overall energy drinks market. The company recorded healthy growth rates for non-alcoholic beverages, especially domestic energy drinks (which grew in line with the market’s movement), including those with herb ingredients, e.g. Som In Sum, Chalarm Black Galingale and the new variances of Shark, a canned energy drinks that are popular among teenagers. It also posted continued growths for functional drinks (it is the leader in the functional drinks market and has contributed significantly to the market’s growths). The market-leading C-Vitt brand commanded a 25% market share (up from 17% Y-o-Y) and the newly launched Peptein Plus product has increased sales and moved Peptein brand back to the top position in the brain-booster drinks market.

In addition, in response to the ongoing growths in the beverage market, Osotspa Enterprise Co., Ltd., a subsidiary of Osotspa Group, has signed share sale and purchase agreement for acquisition of 51 percent of shares of all paid-up capital of Asia Vending Machine Operation Co., Ltd. (AOC), operating its business of selling beverages, food and other products through vending machines to introduce vending machines as the group’s new distribution channels. Osotspa is also looking to launch a couple of new beverage products.

For the personal care segment, Q2 growth stood at 21%. The company asserted its expertise and long-lasting market leadership in the area of baby skin care products by introducing Babi Mild Ultra Mild Sweet Almond, a vitamin E-rich product that keeps moisture in a baby’s skin and makes it soft and healthy, and Organik by Babi Mild, Thailand’s first premium organic products certified with the world-class organic standard. Moreover, it entered the premium-grade cosmetic products market by introducing Plant Story, a facial-care products that use natural materials and attract specific target customer groups. Distributed through e-commerce platforms and uniquely designed stores, the brand has been warmly welcomed.

As for project updates, Osotspa’s new highly efficient, world-class glass bottle factory in Phra Nakhon Si Ayutthaya province will commence the production in August as scheduled, and the construction of the new beverage production factory in the Thilawa Special Economic Zone in Yangon, Myanmar, is on track and expected to be completed and ready for operations in late year.

In addition, the Board of Directors of Osotspa PCL., in its meeting on 14 August 2019, has approved an interim dividend payment for the operational results of the first 6 months of 2019 (from January 2019 to June 2019) at the rate of 0.35 Baht per share (66% of the earnings as reported on the consolidated financial statements for the period, after legal reserves). The Record Date to entitle rightful shareholders who may receive the dividend will be on 28 August 2019 and the dividend payment will be on 13 September 2019.