Osotspa Public Company Limited (OSP) reported strong second quarter 2024 results, with sales and net profit growing from both its beverage and personal care businesses. The company achieved total sales of 7,345 million baht, representing a 9.5% year-on-year (YoY) increase and a 1.2% quarter-on-quarter (QoQ) growth. This was driven by an 11.2% YoY and 0.4% QoQ growth in the beverage segment, with “M-150” maintaining its leading position and “C-vitt” continuing to dominate the functional drink market. The personal care product segment also saw significant growth of 26.3% YoY and 18.2% QoQ. Net profit reached 604 million baht, a 9.9% increase YoY, with profit from operations increasing by 68.0% YoY to 923 million baht. These strong results were attributed to improved cost management, operational efficiency, and the introduction of new products to meet evolving consumer needs and expand the customer base.
The company incurred non-operating losses of 315 million baht from an impairment loss on its investment in Basecamp Brews Limited (BCB) and a provision for loans to Innovation of Experience Co., Ltd. (iEX) amounting to 4 million baht in this quarter. Despite these one-time losses, the company reported a net profit of 1,433 million baht in the first half of 2024, representing a 7.9% year-on-year growth. A dividend of 0.30 baht per share was declared, and the company remains committed to executing its long-term strategic plan.
Ms. Ratiporn Ratcharoen, Group Chief Financial Officer of Osotspa Public Company Limited (OSP), announced that the company's second quarter 2024 results demonstrated continued growth both domestically and internationally. Driven by a long-term strategy focused on strengthening core businesses, diversifying the product portfolio, and premiumizing products to cater to the dual-pricing market, Osotspa has successfully expanded its customer base to new, high-growth segments. The “M-150” brand, in particular, has introduced new energy drink formats to target a wider range of consumers, including office workers and active lifestyle enthusiasts. As a result, the domestic energy drink market has experienced continuous growth, with a 4.0% YoY increase in Q2 2024. M-150 remains the market leader with a 46.4% market share. Similarly, Osotspa dominates the functional drink market with a 45.9% market share, growing 3.8% YoY and 3.0% QoQ. Notably, the “C-vitt” brand, with its vitamin C-infused drinks, has achieved an all-time high market share of 74.4%, growing 6.9% YoY. International beverage sales also grew by 32.5% YoY, primarily driven by strong performance in Myanmar and Laos.
The personal care product segment experienced remarkable growth of 26.3% YoY and 18.2% QoQ, driven by the introduction of innovative products that cater to evolving consumer lifestyles. Building on eight consecutive years (2016-2023) as the market leader in baby bath products, Osotspa is poised to become a leading player in the personal and home care market. The recent launch of the "Babi Mild & Beyond" brand marks a significant expansion of the company's product portfolio, targeting a broader customer base beyond children. The new products, featuring innovative prebiotic technology, cater to the health-conscious consumer and meet the needs of all family members, from infants to seniors. Supported by a strong distribution network, Osotspa is well-positioned to capture a wider market segment.
“Osotspa continues to solidify its market leadership across all product categories. By successfully leading the premium 12-baht energy drink segment and establishing the 10-baht energy drink with "M-Honey" as a sustainable market leader, Osotspa has demonstrated its ability to execute precise and targeted marketing strategies. The recent launch of "M-150 SPARKLING" or "MISO," featuring idol marketing campaigns aligned with Gen Z and Millennial lifestyles, has exceeded expectations. Meanwhile, functional drinks like "Peptein," "Peptein Drink D," and "C-vitt" have experienced consistent growth across all distribution channels. The strong second quarter 2024 results reaffirm Osotspa's commitment to executing its long-term strategic plan. Additionally, to capitalize on new business opportunities and investments that align with Osotspa's five-year growth plan and support the growth of its core business, the company is considering the divestment of non-core assets and minority investments. Despite these divestments, Osotspa maintains a strong financial position with a net debt-to-equity ratio of only 0.01x, indicating its readiness to seize growth opportunities. The company plans to leverage new technologies and introduce innovative products in the second half of the year to meet evolving consumer needs and drive future growth.”
Osotspa is committed to strengthening its business through innovation, driving profitability by enhancing production efficiency and adopting digital technologies. By accelerating strategic investments to support its core business, Osotspa aims to achieve sustainable growth and deliver long-term value to shareholders. The company is also dedicated to its vision of being “the power to enhance life” and creating a sustainable future for all stakeholders.
