CGS International Securities (Thailand) and Finansia Syrus Securities (FSS) wrote in their analyses, reviewing Osotspa Public Company Limited’s (SET: OSP) earnings, margin performance, and sales across domestic and international markets, alongside outlooks for the coming quarters, after the company announced its 2Q26 results.
CGSI noted that OSP posted a net profit of THB 1.10 billion in 2Q26, up 9% year-on-year but down 5% quarter-on-quarter, coming in about 3% above its estimate. The main driver for this outperformance was a record-high gross margin of 42.8%, which was supported by improved production efficiency, manufacturing consolidation, and disciplined promotional spending.
Domestic beverage sales increased 6% year-on-year, partly due to a low base from last year’s distributor destocking, though sales declined 1.3% quarter-on-quarter despite the second quarter typically being a seasonal high. International beverage sales fell 41.9% year-on-year, or 12.6% year-on-year after FX and accounting adjustments. Excluding Myanmar, international sales grew 19.5% year-on-year, reflecting a significant decline in the country due to import license restrictions.
CGSI expects gross margin to decline in Q3 as higher raw material and energy costs are likely to be realized, though efficiency improvements may provide some buffer. The brokerage assesses the result as broadly neutral, noting that the earnings beat was driven by cost efficiency rather than stronger demand. Key factors to watch are Myanmar’s recovery and the degree of gross margin normalization in 3Q26.
Finansia stated that OSP’s total revenue fell 3.6% quarter-on-quarter and 10.2% year-on-year, mainly due to a sharp drop in international beverage sales, which declined 16.3% quarter-on-quarter and 41.9% year-on-year. Even after adjusting for currency effects in Myanmar, the figures continued to drop, impacted by import license issues. Only the personal care segment showed growth, up 9.8% quarter-on-quarter.
Domestic beverage sales grew around 6% year-on-year, across both energy and functional drinks. Gross margin set a new record at 42.8%, rising from 42.5% in 1Q26 and 41.9% in 2Q25. While packaging costs were higher during the period, quick adaptation in cost management and the completion of centralizing production helped support margins in 1H26.
Operating expenses fell by 0.9% quarter-on-quarter and 17.1% year-on-year, leading to a lower SG&A-to-sales ratio of 22.5%, compared to 24.4% in 2Q25, though higher than 21.9% in 1Q26 due to lower revenue. Net profit for 1H26 was THB 2.26 billion, down 0.8% year-on-year, while normalized profit rose 14% year-on-year, accounting for 60% of full-year forecasts.
Finansia predicts that profit in 2H26 will decline compared to 1H26 as higher packaging and energy costs are realized, but year-on-year growth is still expected. Notably, OSP announced an interim dividend for 1H26 at THB 0.45 per share, with a payout ratio of 60% and a yield of 2.6%.
