OSP’s 3Q Earnings Fall to THB244 Million due to FX Loss, Higher Costs

Osotspa Public Company Limited (SET: OSP) announced its 3Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 3Q22 3Q21
Net Profit (Loss)
Million Baht
243.85 580.20
Earning Per Share (Baht) 0.08 0.19
% Change -58
9 Months 2022 2021
Net Profit (Loss)
Million Baht
1,597 2,404
Earning Per Share (Baht) 0.53 0.80
% Change -33.6

In 3Q22, OSP recorded a net profit of THB 244 million, -58.0% YoY, with a net profit margin of 3.9%, -560 bps YoY. In addition to lower gross margin, net profit was impacted by THB 63 million foreign exchange loss from the weakened Myanmar Kyat (MMK), THB 52 million additional cost from slowdown glass production, and higher spending on marketing and sales execution to support product launches. 

For the 9M22 period, net profit was at THB 1,597 million, -33.6% YoY, with net profit margin of 7.7%, -440 bps YoY.

Revenue from sales was THB 6,178 million in 3Q22, +0.9% YoY. Personal care, international businesses, and other segments delivered strong growth partially offset by the decline in the domestic beverages segment during the transition period to premiumization while other market players continued price promotion of their core products.

As of September 2022, OSP recorded a market share of 50.3% in energy drinks and 43.6% in functional drinks. The market share has been stabilized with expectation of continued recovery from 4Q22.

Gross margin was at 29.3%, declined by 360 bps YoY and 190 bps QoQ. Key factors included the rise in key materials and energy prices and fixed cost deleverage from lower volume in both glass and beverage factories, partially offset by the premiumization of M-150 and cost savings from the Fast Forward 10X program.