OSP Reports an Increase of 13% in 2Q Earnings, Offering a Dividend at ฿0.45

Osotspa Public Company Limited (OSP) has reported its 2Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

OSP reported a net profit of 804 million baht, increased 13% compared to a net profit of 710 million baht in 2Q20.

OSP reported total revenue of THB 6,114 million, a decrease of 4.4% YoY, impacted by COVID-19 lockdown. The total revenue from sales decreased by 6.1% YoY to THB 5,909 million. Domestic beverage sales outperformed the market sentiment with 1.3% growth YoY, driven by C-Vitt (+249.3% YoY). Additional beverage production capacity commissioned earlier than planned, which enabled us to serve unmet C-Vitt demand and continue driving category growth since June onward.

Domestic personal care sales decreased by 18.2% YoY, due to a sharp decline in women’s beauty category. However, OSP promptly responded to health and hygiene trend with hand sanitizer products via OEM operation and own product launches under various brands, namely Babi Mild Healthi Plus, and Olé. International business sales, accounted for 12% of total revenue, declined double digit YoY due to the impact of COVID-19 lockdown.

 

Selling and administrative expenses (SG&A) level of spending was at 22.7% of sales, decreased from 1,459 million baht in 2Q19 to 1,340 million baht in 2Q20. OSP’s actions were to focus on core products and defend profit with a reduction in spending through more efficient SG&A control, such that A&P have been cut or shifted to ensure optimum return on investment.

 

In addition, the Board of Directors approved a dividend payment of ฿0.45/share to be paid on September 11, 2020. The ex-dividend date is August 27, 2020.