Osotspa Public Company Limited (OSP) reveals its operating results for the first nine months of 2021 with revenue from sales of 19,810 million baht. The Company maintained its leadership in the domestic beverage market, while the international markets and the OEM business continued to expand outstandingly. The net profit was at 2,404 million baht. The net profit, excluding the foreign exchange impact, was 2,656 million baht. Seeing that the negative factors are relieved and the country will be reopened to welcome tourists, the Company believes that consumer confidence will be increased and expects an outstanding recovery.
Mrs. Wannipa Bhakdibutr, Chief Executive Officer of Osotspa Public Company Limited or OSP, a leading Thailand-based consumer product manufacturer and distributor, revealed the operating results of the first nine months of this year (January-September) that the Company gained revenue from sales of 19,810 million baht, an increase of 3.2% compared to the same period last year, despite the negative factors caused by the Covid-19 pandemic which weakens consumers purchasing power. International beverage sales delivered 31.2% growth. Osotspa demonstrated a strong market leadership position, maintaining a number 1 market share of 54.5% in the domestic energy drink, driven by M-150, a flagship brand. Osotspa used C-vitt as a spearhead driving the overall growth and reached the all-time high market share of 39.8% in the total functional drinks market due to its strong distribution network.
In the third quarter of 2021 (July-September), the Company faced pressure from the severe Covid-19 situation that affected the product distribution. However, with agility, fast adaptation and a strong distribution network, the Company was able to ensure the availability of the products in the market and assist partners in distributing products. This increased consumer confidence. As a result, in the third quarter, sales amounted to 6,121 million baht. Osotspa continued to leverage its strong distribution network to distribute Yanhee Vitamin B water, which could successfully gain and reclaim its market leader position in the flavored water category. In addition, it recognized revenue from the OEM of glass bottles for foreign partners with a growth rate of more than 50%.
The company continues to intensively implement cost management under the Fit Fast Firm program. However, facing rising energy costs and currency exchange fluctuations in the third quarter, the Company recorded Q3/2021 net profit of 580 million baht and 9M/2021 net profit of 2,404 million baht. Q3/2021 net profit excluding the foreign exchange impact was 708 million baht, equal to a net profit margin of 11.6%, while 9M/ 2021 net profit excluding the foreign exchange impact was 2,656 million baht, equal to a net profit margin of 13.4%.
However, the Company believes that the past quarter is the worst and the business will improve significantly in the last quarter of this year after the negative factors in the country have been lifted; the easing of the lockdown restrictions and the country's reopening to fully vaccinated foreign tourists in early November. These will help in building consumer confidence and stimulating shopping demands. It was found that product sales started to show signs of recovery since October and gradually improved continuously. The company has prepared new marketing plans and new products to support the recovery, such as an expansion of distribution channels of 1-liter Cvitt products to leading convenience stores across the country, the release of limited-edition products of the brand Calpis Lacto, Peach Sakura and Maple Syrup scent and the launch of 'Slimma Jelly,' a new product from the brand 'Slimma,' containing dietary fiber, L-carnitine and B vitamins, helping reduce the absorption and burn fat. Therefore, the Company is confident that the overall sales in the last quarter will be higher compared to the last three quarters. Moreover, the Company will develop personal care products that contain CBD ingredients and will work with Yanhee in introducing CBD-infused beverages to the market next year with an aim to meet the new demands of consumers, drive growth and build a future business.
Osotspa has been put on the Stock Exchange of Thailand's (SET) Thailand Sustainability Investment (THSI) 2021 list in the agriculture and food category. The selection of Osotspa among 146 companies on the list reflects its sustainable growth from business practices that prioritize environmental, social and governance (ESG) standards.
