On Monday at 11:40 AM (Bangkok time), the share price of Osotspa Public Company Limited (SET: OSP) fell by 2.73% or THB 0.60 to THB 21.40, with a trading value of THB 272.79 million.
KGI Securities forecasts that OSP is likely to report a loss in its third-quarter earnings for 2024 due to an impairment loss linked to the divestment of a glass bottle production facility in Myanmar, amounting to THB 800 million. The company’s anticipated normal profit for the same period is expected to reach THB 583 million, showing a slight uptick of 4% from a year ago but a 37% drop from the previous quarter.
The notable decline in normal profit when compared to the previous quarter could be attributed to a low season in Myanmar and an expected reduction in domestic sales due to flooding.
OSP’s domestic market share shrunk to 45.4% from 46.4% in the second quarter of 2024. Although the functional drink segment witnessed an increase in market share, overall growth prospects for the products are projected to slow down.
As a result, OSP’s sales volume and total revenue are predicted to decrease by 19% and 15%, respectively, compared to the same period in the prior year. The sales downturn is also anticipated to lead to a reduction in the company’s gross profit margin (GPM) and an increase in the SG&A to sales volume ratio compared to the preceding quarter.
