NR Instant Produce PCL (“NRF”) reported strong performance in Q3/2021; its sales revenue of 516 million Baht, grown by 36.3%, its normalized net profit of 80 million Baht, increased by 8.3% compared to Q3/2020, and its net profit of 65 million Baht. Also, the Company pushes 9-month sales revenue of 1,436 million Baht with 47.9% growth. The Company aims at pursing future growth and expansion strategy of plant-based food to be a leader in global plant-based food as well as expand ecommerce distribution channels both domestically and internationally to make new high in revenue

Mr. Dan Pathomvanich, Chief Executive Officer of NR Instant Produce Public Company Limited (NRF) which manufactures, supplies, and distributes seasoning, ready-to-eat products, vegan and plant-based food, and convenience food and beverage products, mentioned that, for Q3/2021 (July - September) performance, the Company has sales revenue of 516 million Baht, grown by 15.1% QoQ and 36.3% YoY (sales revenue in Q3/2020 of 378 million Baht) mainly due to revenue recognition of City Food, Boosted NRF Corporation such as SOL Trading (fully consolidated for the whole quarter) and WellPath (starting to recognize the revenue in September 2021) and Indeem Group as well as royalty fees and other income.

The strong performance of ethnic food business leads Q3/2021 normalized net profit to reach 80 million Baht, increased by 8.3% YoY and 176.5% QoQ, and EBITDA to reach 134 million Baht, increased by 38.2% YoY. However, net profit margin was at 14.3%, slightly decreased by 14.3% YoY. Despite global logistics issue and container shortage, the Company is able to control, operate, and organize. Given that there were no Delta variant virus, the Company anticipated that Q3/2021 performance would be a great quarter.

For 9-month (January - September) performance, the Company has sales revenue of 1,436 million Baht, increased by 47.9% YoY (sales revenue in Q3/2020 of 971 million Baht) due to increase in revenue of own-branded products in all categories and higher orders from major OEM customers in North America and Europe regions as well as higher revenue from City Food consolidation, ecommerce business selling products under Prime Labs, SOL Trading, WellPath and Indeem Group, and other income. In terms of 9-month revenue structure, revenue is divided into 4 categories: ethnic food (81%), plant-based food (4%), functional products (3%) and ecommerce platform (12%). Additionally, NRF focuses on building ecommerce platform and acquire new company aiming to be leader in the market. Recently, the Company invested in Indeem Group taking as a domestic revenue stream of ecommerce business.

Normalized net profit of the Company was 178 million Baht, increased by 6.4% compared to net profit in Q3/2020 which was 167 million Baht. EBITDA of the Company was 307 million Baht, increased by 35% compared to EBITDA in Q3/2020 which was 228 million Baht. However, net profit margin was at 11.8%, slightly decreased compared to Q3/2020 mainly due to increase in loss-sharing from Plant And Bean Ltd. which received British Retail Consortium (BRC) approval in September, higher expenses from E-commerce business. However, NRF has benefited from asset purchase under Boosted NRF Corp. which operates high gross profit ecommerce business including positive impact on depreciation of Thai Baht.

Mr. Dan Pathomvanich also added that the Company aims at pursing future growth and expansion strategy. The Company implemented organization restructuring by establishing subsidiaries in the United States, the Netherlands, and Hong Kong in order to increase competitive capabilities and support future expansion plans of plant-based platform to be shine in global plant-based market. Furthermore, COVID-19 pandemic has positive impact on demand in ecommerce and plant-based markets as planned. In the previous quarter, the Company partnered with Innobic (Asia) Company Limited, a subsidiary of PTT, to establish Nutra Regenerative Protein Company Limited (NRPT) with objective of constructing plant-based factory in order to increase business opportunity and support Food for Future trend together with to increase wider range of alternatives for domestic plant-based consumers. The factory will be situated in Ayutthaya with capacity of 3,000 tons per year. The Company also plans to sell plant-based products under Nove Eats brand on food delivery platform in Thailand, expected to be launched in Q4/2021. Apart from this, Plant And Bean Ltd. received BRC approval and is expected to ramp up production in Q4/2021 in order to be plant-based leader in Europe.

The Company expands to ecommerce business and increase distribution channels both domestically and internationally. In Q3/2021, the Company acquired assets under WellPath in the investment amount of USD 4.06 million expected to be fully consolidated for the whole quarter in Q4/2021. Currently, BOOSTED NRF Corp. owns 3 brands which are Prime Labs, SOL Trading, and WellPath and has more than 50 SKUs. Moreover, the Company plans to expand via acquiring new companies. The aforementioned investment contributes to widened variety and alternatives for consumers to choose food and supplementary categories on global ecommerce platforms. In addition, the Company invested in Indeem Group Company Limited aiming to expand to universal ecommerce platform presenting variety of innovative products via connecting consumer networks in the form of omnichannel, generating sales from CBD oil skincare, supplementary and consumer products.

Lately, Board of Directors’ meeting has passed a resolution that City food, a subsidiary of NRF, invests in 66.7% of Botany Petcare Company Limited, accounting for 36 million Baht. In the present, City Food changes the business objective from producing ethnic foods and soy milk to producing ethnic foods and pet food and snacks. The transaction is expected to be completed in Q4/2021 which will fully utilize the land, plant and manufacturing facilities in Ratchburi of City Food Company Limited aiming to develop and increase operational capabilities of a plant-based pet food in the next 3 years. Additionally, GTH, a subsidiary of NRF, partnered with Khon Kaen University to collaboratively develop harvesting and extraction of CBD oil as well as opening of Hemp House, a franchise business, in order to push 2021 operating performance to hit new high.