NRF showcases results for the first six months of 2022 in top form, pushing net profit growth of more than 164% after investment startups turn a profit, reflecting a clear investment plan. The e-commerce business is growing strongly. Accelerate sales on the Amazon platform

16 August 2022

NR Instant Produce PCL, or NRF, a leading manufacturer and exporter of food and seasonings, showcases its performance in the 2nd quarter of 2022. NRF had sales of 546 million baht and a net profit of 39.5 million baht. NRF's performance has been strong in the first six months, with total sales revenue of 1,149 million baht, up 25%, and a net profit of 68.4 million baht. A 164.1% increase after an investment in startups made a profit reflected a clear investment plan in the e-commerce business, which grew rapidly. NRF is ready to speed up merchandising on the Amazon platform under the brands Prime Labs, SOL Trading, and WellPath. Moving forward with the plan to penetrate the Food and Nutritional Supplements group, which includes dietary supplements for health and beauty, to support the amount of consumer purchase needs by 2022.

Mr. Dan Pathomvanich, Chief Executive Officer of NR Instant Produce Public Company Limited (NRF), a manufacturer, supplier, and distributor of seasoning products, instant foods, environmentally friendly seasonings, plant protein foods, ready-to-cook and ready-eat foods, and instant beverages, revealed that the company had sales revenue of 546 million baht in the 2nd quarter of 2022, an increase of 21.8% compared to the same period last year, which had sales revenue of 448.1 million baht. Caused by an increase in revenue from the e-commerce business of more than 116.2% compared to the same period last year. The e-commerce business includes (1) BOOSTED NRF Corp. which is a company that focuses on selling products on the platform under the Prime Labs brand, SOL Trading, and WellPath, and (2) Indeem Group, which is a multi-level marketing business in the domestic. Moreover, the revenue structure from sales in the 2nd quarter of 2022 is divided into (1) Thai food and local food products (specialty) for 63%, (2) Plant-based food products for 11%, and (3) E-commerce Business for 26%.

The net profit in the 2nd quarter of 2022 was 37.1 million baht, of which the net profit from normal operations was 39.5 million baht, an increase of 191.1% and 269.5%, respectively, compared to the same period last year, which had a net profit of 10.7 million baht and a net profit from normal operations of 12.8 million baht. This is mainly due to the record of gains from the increase in AUSA.CN shares which Australis Capital Inc. has paid overdue GTH shares to the company and also recognized the share of reduced losses from Plant And Bean Ltd. because the pound sterling exchange rate strengthened, positively resulting in net profit margins rising to 6.7% from the same period last year.

Overall, the operating results of the first 6 months of 2022 (January–June) showed total sales revenue of 1,149 million baht, an increase of 25% compared to the same period last year. with total sales revenue of 919.9 million baht. The result comes from Thai food and local food products as well as specialty foods, which have increased sales revenue in all regions except Europe and the Americas, which come from food products (recipe mix) under the brands of NRF and City Food. And the recognized income from the pet food group (Botany Petcare Co., Ltd.) coupled with the sales revenue of the e-commerce business group that grows well, compensates for the lower sales revenue of the plant-based food business group. Thus, the net profit was 62.7 million baht, which is a net profit from normal operations of 68.4 million baht, an increase of 87.2% and 164.1%, respectively, compared to the previous year with a net profit of 25.9 million baht, which is a net profit from normal operations of 33.5 million baht, while EBITDA was 202.2 million baht, an increase of 42.8% compared to the previous year. It’s a leap in growth after a profitable investment startup reinforces its investment plan to create long-term growth for NRF.

“The problem of containers is not enough to meet demand. It still affects the company's ability to export products on time. As a result, some revenue awareness has been postponed. Although freight has decreased, the price is still high compared to the pre-COVID-19 period. However, the logistics situation is expected to continue to improve. Due to the outbreak of COVID-19, the Omicron species in the past quarter did not have a significant impact, while the situation between Ukraine and Russia has resulted in increased raw material and energy prices. However, because the baht depreciates and the company has a relatively large proportion of export revenue. Therefore, it does not have a significant impact on the company's gross profit margin," said Mr. Dan.

Chief Executive Officer NRF added that the 2022 action plan has penetrated into the Food & Nutritional Supplement group to support the current growing demand of consumers by the plan to expand the market and products in Thailand. And recently signed a business cooperation agreement with Winnergy Medical PCL or WINMED, an importer and distributor of machines and equipment for collecting, analysing, diagnostic and medical treatment, to bring dietary supplements Health and beauty products merchandise through WINMED offline and online channels. This collaboration combines the strengths of both companies to provide consumers with access to supplement products that sell well at Amazon Best Seller tiers, such as the WellPath brand and Prime Labs brand, which cover both females and males, as well as mother and child. In addition, it is a product that is consistent with the company's vision, which is to care for and strive for sustainability for consumers and the planet.

At the same time, NRF continues to expand its business by launching ‘alt. Eatery’, a plant-based protein food community, to present the first future world lifestyle in Bangkok. This business is operated through Nutra Regenerative Protein Co. Ltd or NRPT, a joint venture between Co., Ltd. Innobic (Asia) and Co., Ltd. Nove Foods, a subsidiary of NRF. ‘alt. Eatery’ will focus on modern consumers who care about their health and the environment by offering a variety of plant-based foods, selected by Thai entrepreneurs, and organizing a workshop that combines food innovation knowledge and caring for the environment. Along with the use of clean energy from solar roofs and facilities for the future world, such as electric vehicle charging points, to be a model for sustainable and environmentally friendly living.

In addition, the company has strengthened the ethnic and specialty food businesses by launching a Botany Petcare animal feed factory to produce food and pet snacks. Initially, it had a production capacity of 400 tons per month and planned to expand the production capacity during the 4th quarter of 2022 by another 1,000 tons per month to meet the needs of domestic and foreign customers. This is consistent with the business plan to expand the market to cover Southeast Asia. This factory has been promoted by the Board of Investment (BOI) with a construction process and production process that have been certified by the Department of Livestock Development. The investment in animal feed factories is one of the strategies that will complement the action plan to cover a leading pet food manufacturer and a sustainable food manufacturer in the future.