Osotspa Announces Q3/2019 Net Profit of 838 Million Baht Through Strong Growth of Energy and Functional Drinks, Planning to Open New factories and Fully Expand into CLMV

Osotspa Public Company Limited (OSP) announced its Q3/2019 performance, showing the Company’s continuous growth and a net profit of 838 million baht, an 8.5-percent increase over the same period of the previous year, propelling the first nine months’ net profit to 2,436 million baht through the success in the promotion of the energy drink and functional drink markets that have grown strongly and sustainably together with the efficient management of production cost. The Company is confident that the level of performance will be maintained in the last quarter of this year through plans to launch new products, cost control strategy and production ramp-up with the launch of new factories both in Thailand and abroad, market expansion into Vietnam and the investment in the glass bottle factory in Myanmar which is expected to become operational in 2021.

Mr. Petch Osathanugrah, Chairman of the Executive Committee of Osotspa Public Company Limited (OSP), a leading Thailand-based consumer product manufacturer and distributor,announced that the Q3/2019 (July-September 2019) performance has maintained continuous growth with the quarterly net profit recorded at 838 million baht – an 8.5-percent increase over the same period of the previous year, propelling the first nine months’ net profit to 2,436 million baht through the success in the promotion of energy drinks that have maintained a 53.5-percent market share as targeted, while becoming the market leader in functional drinks through the successes of C-Vitt and Peptein.

In Q3/2019, the company retained its leadership in the energy and functional drink segments, as its non-alcoholic beverage product group showed growth across the portfolio including the flagship M-150 drink and ginseng-infused energy drink Som In Sum, along with the functional drink segment including the popular C-Vitt. M-150 still maintained its leadership position in the market with an impressive 37-percent market share. At the same time, the company is also promoting functional drinks in the market to popularize well-known brands such as C-Vitt and Peptein that grew 37.8 percent and 31.8 percent, respectively.

Meanwhile, new beverages were also launched, namely, V Plus containing minerals, vitamin C and cool mint, as well as Slimma – the drink that helps control body weight by blocking the absorption of fats, starch and sugar into your body with L-carnitine and Vitamin B. This product was designed to be introduced in the startup business model targeting a specific market group of consumers through selective channels, such as online and fitness parlors, and using online social media for more targeted advertising.

Regarding the personal care segment, the leadership in the liquid soap for babies / children is maintained through the success of Babi Mild Sweet Almond that has received good feedback. In addition, the “Fit Fast Firm” cost control strategy has also been successful through the adjustment in product formulas, changes in packaging and others, that have positively impacted the initial profit that increased to 34.6 percent – 2.8 percent over the same period of the previous year – growing the net profit according to set plan.

“The aggressive marketing and the research and development of new product formulas have helped us to respond more directly and quickly to customers’ needs, so we are able to maintain our leadership in different product markets. In addition, in this past quarter, we opened a new glass bottle factory in Rojana Industrial Estate and a new talcum powder plant in Lat Krabang Industrial Estate to increase production in response to the markets which are growing at a fast pace,” Mr. Petch said.

For the last quarter of this year, Osotspa is building on successes of being the market leader in Thailand to expand into the Vietnam market by taking a 60-percent share in Osotspa VTA Joint Stock Company to conduct energy drink business in Vietnam. The Company is confident in the growth potential of this market, due to the large population most of whom are in the younger generation bracket, the continuously growing economy and the increasing purchasing power. The strategy is to create and build on the distribution channels of the business partner, introduce differentiated products and leverage market position that will lead to sustainable growth.

Meanwhile, the CML (Cambodia, Myanmar and Lao PDR) which constituted the Company’s main markets, significant growth was maintained continuously. The construction of the new beverage factory in Myanmar will be completed within this year and officially start production in Q1/2020 as planned. Also, a plan has been set in place to build a glass bottle factory in Myanmar through the Myanmar Golden Eagle Company Limited (MGE Group) and Myanmar Golden Glass Company Limited (MGG) to improve profitability through efficient cost control process and improved production capability. The factory is expected to be open commercially within the year 2021.