OSP sets profit target for the year '64, grows 2digit to penetrate the energy drinks market, small brands - reduce costs

Mrs. Kannika Chalit-arporn, Chairman of the Board of Directors of Osotspa Public Company Limited (OSP), revealed that the company has set a profit target for the year '64 to double-digit (2-digit) growth due to a continuous focus on สล็อต cost reduction. With the goal of year 66 to reduce costs by 2,500 million baht from this year, it is expected to reduce costs by approximately 1,000 million baht through operating strategies. Especially to increase the efficiency and effectiveness of the Fit Fast Firm project

The company has laid out five strategies for the next year, in addition to the first strategic Fit Fast Firm program, there will also be 2. Pathways for growth in the energy drink product line Under the brands that still have a low growth percentage, such as Slimma, for example, since the past has mainly focused on online sales. 3. To focus on expanding the beverage market in Thailand.

4. Expanding business in Myanmar Due to the problem of COVID-19 situation this year This makes it unable to operate fully production machines, with two businesses: a beverage factory at Tilawa Industrial Estate under Osotspa Myanmar Co., Ltd., a joint venture between OSP holding 85% shares and Loi Heng Co., Ltd. holds 15 shares. % And production and distribution of glass bottles

5. The company will drive sustainability (Sustainability) continuously. In addition, it is also looking at the growth in the manner of Inorganic Growth, which is in the process of investing in both acquisitions (M&A) and joint ventures (JV) to strengthen the company. With the need to expand from energy drinks and functional drinks, the company is open to all opportunities that come in. With cash on hand that can support billions of baht in future investments

While the company has invested in the year '64 at 2,500 million baht to improve machinery. And invest in new technologies

As for the 2020 earnings direction, revenue is expected to be stable compared to the year 2019 with revenue of 2.6 billion baht, lower than the original target, which is expected to grow 10%, with the first nine months earning a total of 1.3 billion baht due COVID-19 situation Affect purchasing power However The company has adjusted its strategy to focus on 3 main areas amid the COVID-19 crisis: 1. Increase production efficiency and reduce overall costs through the Fit Fast Firm program. Including promoting the main brand (Power Brand) such as M-150 and CIVIT, as well as developing products to meet the needs of consumers promptly. Emphasis on household consumption And E-Commerce distribution channels; and 3. Maintain a strong financial position.

However, the 4Q20 trend is still unable to answer whether sales will grow more than Q3 / 2020, but for the first nine months, the overall picture of the Energy Drinks market is down 7% and there are signs of improvement towards the end of the year. It is expected that the whole year will remain negative. Before recovering to be positive in the year '64 Functional Drinks continued to grow.

The company is currently the market leader in Energy Drinks with 54.4% market share and Functional Drinks with 37.4% market share.