Osotspa Public Company Limited (OSP) reported a third-quarter revenue of 6,043 million baht, slightly down due to seasonal factors and the impact of floods. However, the company's normalized profit rose 20% year-on-year to 672 million baht. This was despite a net loss of 361 million baht attributed to restructuring activities, including the divestment of its glass bottle manufacturing business in Myanmar. The company expects a recovery in the fourth quarter and plans to expand its market reach both domestically and internationally, targeting new consumer segments and accelerating the launch of innovative products to drive growth across all segments.
Ms. Ratiporn Ratcharoen, Group Chief Financial Officer of Osotspa Public Company Limited (OSP), revealed the company's third-quarter (July-September) 2024 performance. The company reported sales revenue of 6,043 million baht, decreasing by 3.7% year-on-year (YoY) and 17.7% quarter-on-quarter (QoQ), primarily due to seasonal factors and the impact of floods in the northern and northeastern regions, affecting both domestic and international beverage sales. However, international beverage sales grew by 22.3% YoY, driven by strong performance in Myanmar and Laos. Additionally, personal care products continued to grow steadily by 8.5% YoY, supported by innovative products that cater to evolving consumer trends and expand into new customer segments.
In the previous quarter, the company recorded a net loss of 1,033 million baht due to a write-off of bad debts and expenses related to the divestment of its investment in MGE Group, a glass bottle manufacturing business in Myanmar, as part of its Myanmar investment strategy, as well as the sale of investment properties. Excluding these one-time items, the company reported a normalized profit of 672 million baht, representing a 20% year-on-year increase, reflecting the continued strong performance and resilience of its core business. The improved gross margin of 36.1% was driven by lower raw material and energy costs, coupled with effective management of selling and distribution expenses.
C-vitt continues to innovate and launch new products for Thai consumers. The latest addition is C-vitt Vitamin C 1,000mg, offering a higher dose of vitamin C per bottle to meet growing health needs. The new passion fruit flavor is a refreshing and delicious option that appeals to the younger generation. Additionally, the launch of Peptein Goodnight caters to the needs of modern consumers seeking relaxation and better sleep quality. Osotspa's functional drink portfolio maintains a strong market leader position, with a 44.8% market share this year. Peptein drinks account for 5.5% of the market, up 1.0% YoY, while C-vitt holds the highest market share of 74.0% in the vitamin C drink segment, growing 5.3% YoY.
In the fourth quarter, Osotspa aims to drive growth in its core businesses, particularly beverages and personal care products. Building on the success of its idol marketing strategy with endorser "Jung and Cullen", the new fizzy “MISO” drink has launched a limited-edition can featuring Jung-Cullen, further delighting fans. Additionally, the company continues to lead market trends by partnering with the hottest influencer of the year, "Butterbear,” as a brand presenter for both Baby Mild and Calpis Lacto. Special campaigns featuring Butterbear will be rolled out throughout the year to enhance brand awareness and engage with consumers.
The company expects strong growth in the fourth quarter of 2024, driven by expanding gross margins due to increased production volume and strong international business performance. Additionally, the recovery of domestic consumption and consumer demand following the flood situation will contribute to this growth. Osotspa's ongoing focus on innovation, new product launches, and various marketing activities is expected to stimulate the market in the final quarter. The company aims to achieve at least 5% year-on-year revenue growth while maintaining cost efficiency, sustainable business practices, and a commitment to social responsibility, which aligns to its aspiration to be “the power to enhance life” to consumers and stakeholders.
