Osotspa Shows 926MB Q1/2020 Net Profit – a 4.2% Hike M-150, C-Vitt and Babi Mild Continue Growth Tackling COVID-19 with Strong Portfolio and Innovation

Osotspa Public Company Limited (OSP) announced its Q1/2020 performance with 926 million baht net profit and sales revenue of 6,687 million baht. The Company retains its leadership in the energy drink segment with 54-percent share of the market, while C-Vitt broke the record to take the perpetual highest market share. The overall business still grows despite the COVID-19 risk factor. This performance was the result of the strong product portfolio and the capability to adjust and drive new innovations that quickly fulfill the changing market demand. OSP has a proactive plan to effectively tackle the crisis while increasing beverage production lines to meet demand and fulfilling the health trend in the second half of the year.

Mr. Petch Osathanugrah, Chairman of the Executive Committee & CEO of Osotspa Public Company Limited, Thailand’s leading manufacturer and distributor of consumer products, announced the Q1/2020 performance (January-March 2020) that the Company was able to maintain its growth according to plan despite the COVID-19 pandemic that has impacted the overall economy. The Company gained a 4.2 percent increase in net profit to 926 million baht compared to the same period of the previous year, and a sales revenue of 6,687 million baht – a 6.0 percent improvement over the same period of the previous year. The main contributing factor was OSP’s strong brand portfolio, both beverage and personal care product categories, that fulfill the precise needs of the consumers, coupled with the specific and timely development of innovations.

In the beverage category, OSP continues to hold its leadership in the energy drink segment with the market share 54 percent, particularly the M-150 brand that retained its position at the top with increased market share. The functional drink segment also continued to grow due to the significant change in the consumers behavior towards healthy drinks. This has resulted in C-Vitt gaining its market share to 31.3 percent and boosting the overall functional drink market growth by 16.1 percent.

The personal care products also showed good growth due to the expertise of the R&D team that helped to develop new products that precisely and promptly fulfilled the needs of the consumers, such as the introduction of 70% alcohol hand disinfectant products that differentiated themselves from other products in the market. These include the “Ole” brand disinfectant gel and spray with the distinctive scent of Ole candies to present an attractive choice for consumers who are looking for disinfectant gel and spray with a nice aroma. Also, worth mentioning is the “Babi Mild Natural Hand Sanitizer Gel” for mothers who are looking for products for tender skin. This product ensures its gentleness with the organic aloe vera extracts that have been granted world-class ECOCERT certification.

At the same time, the Company has been successful in growing its e-commerce channel by up to 3-folds. Brands that were favorite among consumers include personal care products, such as Babi Mild, and beverage products, such as Slimma. the drink with dietary fiber, L-Carnitine and Vitamin B to help block the absorption of fats, starch and sugar, and Peptein Gold – the drink that enhances the immune system.

Moreover, the “Fit Fast Firm” cost control project proceeded continuously in a bid to increase competitiveness in the market as well as to effectively reduce costs, while the increase in production capacity of beverage products to fulfill demand has been progressing according to plan and is expected to boost production capacity by 10-15 percent within the second half of this year.

In regard to the impact of the COVID-19 pandemic on OSP businesses, Mr. Petch said, “The COVID-19 situation has affected many businesses. However, Osotspa’s position remains strong from having a diverse range of consumer products to fulfill the needs of every group of consumers. And as the Company has made advanced and effective preparations for every contingency even before the epidemic became more serious, including marketing campaigns, production, supply chain and delivery, the result was that the operation was not interrupted during this irregular time. More importantly, the Company has tried its best to ensure that all staff members are safe from COVID-19 with no plan to terminate employees. The Company also stands ready to provide full cooperation to the government sector to ultimately help stop the COVID-19 pandemic.”