Osotspa Hits New High with a Skyrocketed 1Q21 Profit of 1,004 Million Baht and a revenue of 6,776 Million Baht Despite COVID-19 pandemic

Osotspa revealed the 2021 first-quarter operating results with new high revenue and net profit, despite the COVID-19 pandemic. The company had the revenue of 6,776 million Bath and the net profit of 1,004 million Baht, increasing by 8.4% when compared to that in the same quarter of last year as a result of the agility management that emphasizes speed and flexibility. The Company also confirms its leading position in the energy drink and functional drink market, while having two-digit growth in international business.

Mr. Thana Chaiprasit, Acting CEO of Osotspa Public Company Limited or OSP, Thailand’s leading manufacturer and distributor of consumer products, revealed the operating results of the first quarter of 2021 (January - March). Amidst all challenges from the COVID-19 pandemic that affects the overall economy and consumers' purchasing power, the agile management, ability to promptly adapt to the changing market conditions and effective cost management under the Fit Fast Firm project, enable the company to cope with the negative factors. As a result, the net profit of the first quarter hit a new high at 1,004 million baht, an increase of 8.4%, when compared to the same period of the previous year.

Through brand portfolio strategies and brand loyalty marketing campaigns, the energy drink products have maintained its leading position in the market with a market share of 54.9%, where the M-150 brand is the number 1. Meanwhile, Som In Sum, which just launched new products with herbal ingredients, has grown gracefully. As for functional drink products, the Cvitt brand has maintained its market leadership and growth with a 34.9% market share, due to a strategy of distribution channels expansion to cover more areas.

As for the foreign market, the situation of the COVID-19 epidemic has improved, resulting in a remarkable growth of 11.6%. For the Myanmar market, Osotspa’s new beverage factory in Myanmar that was opened last year, as well as local partners and the local management team who has good knowledge of the market and consumer behavior, make it flexible to adjust operations and strategies promptly to meet the market demand. As a result, the Company is able to maintain sales and growth despite unusual situations, including the COVID-19 outbreak and political matters.

“In the first quarter of this year, a COVID-19 outbreak still remained. However, Osotspa's potential in operating the business with a clear management plan; including adapting the strengths of the portfolio brand to initiate sales growth in beverage products, strong distribution network, strategic adaptation to rapidly changing consumer behavior and cost management under the “Fit Fast Firm” project that has maintained its efficiency contribute to our success in driving net profit to a new high, despite the negative factors in the market" said Mr. Thana.

For the 2Q21 plan, the company is still focusing on using the strength of the brand portfolio to help expand the new customer base. The company also focuses on responding to consumer behaviors during the COVID-19 epidemic. Seeing that consumers are more concerned about their health and remain home, the Company introduced Cvitt 1-liter packaging.

The Company also focuses on building new business partners to drive growth and future business. The Company has collaborated with Yanhee Vitamin Water on expanding the vitamin water market in response to consumers' health trends, as well as investing in developing herbal drinks, including hemp extract (CBD). The Company also creates a new marketing collaboration of leaders of the two industries that have the same target group. M-150 and Tiger brand have jointly released a campaign "Fight Like a Tiger with Unlimited Spirit” to penetrate the contractor group by launching M-150 Black Ginger with Honey X Tiger Cement Limited Edition and specially designed premium products. This campaign also links to Taem M platform. This collaboration helps unite the strengths of Osotspa and its partner to create new opportunities to meet new customer demand and expand to new segments with high potential.