Osotspa Public Company Limited (SET: OSP) has navigated a volatile global economy to deliver a robust start to 2026, characterized by significant improvements in underlying profitability and operational efficiency.
Despite reported revenue from sales for 1Q26 standing at THB 6,345 million—a 7.1% decrease compared to 1Q25—this figure primarily reflects the adoption of new accounting standards. On a comparable adjusted base, revenue actually grew 3.6% YoY, driven by a 11.4% surge in domestic beverage sales.
The energy drink segment served as the primary catalyst, bolstered by the premiumization of core brands like M-150 and successful innovations such as Lipovitan-D 0% Sugar.
The company’s bottom-line performance underscores a successful focus on operational excellence. While reported net profit dipped 8.6% YoY to THB 1,157 million, core profit from operations jumped 40.9% YoY on an adjusted base.
This enhanced profitability was fueled by a gross profit margin expansion to 42.5%, an increase of 220 basis points from 1Q25. OSP attributed this margin growth to continuous production efficiency improvements following last year’s strategic production centralization and resilient supply chain management.
Strategic cost discipline also played a vital role in the quarter’s success. Osotspa achieved a 17.9% YoY reduction in distribution and administrative (SG&A) expenses, bringing them down to THB 1,389 million. This reduction was driven by a commitment to ROI-driven marketing and disciplined trade promotions.
Meanwhile, OSP faced international headwinds during the period, where adjusted international beverage sales declined by 10.6% YoY. This was due to temporary shipping shortages, tightened import regulations in Myanmar, and a challenging trading environment in Cambodia.
Though the adoption of Thai Accounting Standard (TAS) No. 21 impacted the translation of items denominated in Myanmar kyat, management disclosed that this has no impact on fundamental competitiveness. Notably, OSP remains committed to its “Executing Excellence” strategy, targeting mid-single-digit revenue growth for the full year.
