Osotspa Shows Q2/2020 Net Profit of 804 Million Baht with 13.2% Growth, Moving Strenuously to Tap New Market Opportunities during COVID-19, Increasing Production Capacity to Meet Domestic and International Demands and Declaring Interim Dividend Payment of 0.45 Baht

Osotspa Public Company Limited (OSP) announced operating results for the Q2/2020, showing a net profit of 804 million baht from the total sales revenue of 5,909 million baht. Its energy drinks’ market share has increased up to 55.6%, bucking the trend of the COVID-19-inflicted downturn. Its functional drinks continuously grow. C-vitt, vitamin C drink, holds the highest sales record of 99 million bottles in response to the health trend. The Company strategizes for further growth in the second half with C-vitt penetrating both domestic and international markets and a new production line in Myanmar. It also announced an interim dividend payment at the rate of 0.45 baht per share.

Mr. Thana Chaiprasit, Acting CEO of Osotspa Public Company Limited or OSP, Thailand's leading consumer products manufacturer and distributor, said that although the overall economy of the country was severely affected by the COVID-19 pandemic that impacted on consumers’ confidence and purchasing power, as well as the changes in consumer behavior, the Company still has its strength of diverse product portfolio and the potential to drive innovations that serve new needs in a timely manner. Although the total sales revenue has decreased, compared to the same period last year, flexible operations and effective costs control make the profits grow. The net profit in Q2/2020 (April - June 2020) was 804 million baht, an increase of 13.2%.

Despite the decline of the overall energy drink market by more than 10%, the Company was able to increase its market share of the energy drink segment to 55.6%, the highest in three years, as consumers now choose the most trusted brand due to up-tight spending. M-150 still dominates the market. For functional drinks, the segment is growing in line with consumer health care trends. In particular, the C-vitt brand, vitamin C beverage, topped 99 million bottles due to an increase in production capacity in the second quarter, faster than what was expected to be completed in the third quarter, affirming its market leadership with 33.9% share. Also, 'Slimma', a drink containing dietary fiber, L-carnitine and vitamin B and helping reduce the absorption and burn fat, is growing rapidly and expanding the distribution channel to modern trade after receiving a good response from online channels earlier this year.

Mr. Thana said, “Osotspa is well aware that in every crisis, there is an opportunity. In this COVID-19 situation, not only do new demands arise, especially healthcare trends, but consumers now choose to consume the most trusted brand. Therefore, the Company focuses on creating new business opportunities while continues to expand the production capacity to serve the growing domestic and region-wise demands."

To meet health and hygiene trends, Osotspa launches new products in a wide range of personal care products such as organic foaming handwash and surface cleansing spray under the Babi Mild Healthi Plus brand and alcohol hand sanitizer under the Twelve Plus brand. In addition, the beverage product has been developed as well, including Chalarm Energy Drink with Vitamin C formula and C-vitt Jelly, a new snack.

Moreover, a beverage plant in Myanmar has begun operating at the end of July, increasing the marketing potential and unit profitability. The expansion of the beverage plant in Phra Nakhon Si Ayutthaya province helps increase production capacity by more than 15% and support plans to export C-vitt products to other countries in the region. This increased capacity and reduced costs due to the Fit Fast Firm project are key drivers of double-digit growth in the second half of the year.

As the operating results were in accordance with the plan, the Board of Directors has approved the payment of an interim dividend from the first half of the year 2020 at the rate of 0.45 baht per share, totaling 1,352 million baht. The record date to entitle rightful shareholders who may receive the dividend will be on 28 August 2020 and the dividend payment will be on 11 September 2020.