FSS International Investment Advisory Securities (FSSIA) wrote in a research note that Osotspa Public Company Limited (SET: OSP) reported a stronger-than-expected performance for the first quarter of 2026. The company booked a net profit of THB 1.16 billion, which represents a 67.2% increase quarter-on-quarter but an 8.6% decrease year-on-year. Adjusted for recurring profit, growth was even more impressive, rising 40.7% QoQ and 19.2% YoY.
This robust result exceeded expectations, primarily due to lower-than-forecast operating expenses. The selling, general, and administrative expenses (SG&A) to sales ratio dropped to 21.9%—outperforming the forecast of 23.2% and falling from 24.8% in both 4Q25 and 1Q25. This improvement came as OSP continued to enhance marketing efficiency and strictly control costs as planned.
Total revenue saw a slight sequential increase of 0.4% QoQ, but declined 7.1% YoY. This year-on-year contraction stemmed mainly from a decrease in international beverage revenues, which—despite a 4.9% QoQ rise—fell sharply by 38.5% YoY. The drop was attributed to obstacles from Myanmar’s government regarding import licenses and a shift to using the market-rate kyat, which depreciated by about 20%. Excluding foreign exchange (FX) effects, international sales would have declined about 10.5% YoY.
Domestically, the beverage segment posted solid growth of 1% QoQ and 11.4% YoY, benefiting from last year’s low base caused by inventory adjustments after launching its THB 10 beverage line. The personal care segment slipped seasonally by 5.2% QoQ but showed solid annual growth of 7.4%.
Gross profit margin reached a new high at 42.5%, up from 39.5% in 4Q25 and 40.3% in 1Q25, in line with expectations. This improvement was driven by ongoing manufacturing efficiency upgrades and production centralization initiatives begun last year.
First quarter profit accounted for 31.6% of OSP’s full-year forecast. However, FSSIA anticipates that profits may soften in 2Q26, with no clear sign of a revenue rebound QoQ as Myanmar’s import license issues persist. Additionally, higher packaging and freight costs are expected to be fully reflected by 3Q26. A recovery in Myanmar’s business could help offset rising costs.
FSSIA maintains its forecast for OSP’s 2026 normalized profit at THB 3.67 billion, representing a 4.7% YoY increase, and retains a target price of THB 17 per share.
