NRF's performance continues to improve, with net profit from Q3/65 operations increasing by more than 205.9%, preparing to ramp up production and export of Botany Petcare animal feed in the fourth quarter of 2022.
NR Instant Produce PCL, or NRF, a leading manufacturer and exporter of food and seasonings, showcases its performance in the 3rd quarter of 2022. NRF had sales of 579.3 million baht, a 12.3% increase, and a net profit from normal operations of 71.8 million baht, a 55.5% increase. NRF's performance has been strong in the first nine months, with total sales revenue of 1,729.0 million baht, up 20.4%, and a normal operating profit of 131.2 million baht, an increase of 45.7% compared to the same period last year. Also, NRF gained revenue from the sale of investments in GTH and Nove Eats, resulting in a net profit of 246.7 million baht, an increase of 188.2%. Thai food and local food product businesses, as well as e-commerce, are experiencing rapid growth this year. NRF is ready to launch Botany Petcare, a feed mill, to accelerate production and export the final curve of this year. Moreover, NRF is preparing to develop a plant-based menu to be sold at Cafe Amazon later this year and to open its first flagship store at OR gas station next year.
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 operating results for the 3rd quarter of 2022 (July-September) showed that the company received sales revenue of 579.3 million baht, an increase of 12.3% compared to the same period last year, which was 515.8 million baht. The main factors behind the increase in sales are Thai food and local food products, as well as pet food. The net profit in the 3rd quarter of 2022 was 178.3 million baht, an increase of 198.7% compared to the same quarter last year. This is due to the recognition of profits from the sale of investments in Golden Triangle Health Company Limited (GTH) and Nove Eats Company Limited (Nove Eats). The net profit from normal operations was 71.8 million baht, an increase of 55.5% compared to the same period last year, which had a net profit of 46.2 million baht. It is a favorable benefit from the depreciation of the Thai baht and an increase in sales in the e-commerce business group because it is a business group with high gross profit, making it possible to compensate for the price increase of raw materials.
As for the overall performance of the first nine months of 2022 (January–September), total sales revenue was 1,729.0 million baht, an increase of 20.4% compared to the same period last year, which had a total sales revenue of 1,435.7 million baht. Resulting in growth from 1) Thai food and local food products, including specialty foods that grew by 11.5%, with sales increased in all regions except Europe, including additional sales from products from the Recipe Mix, Basic Seasoning, and Pet Food Business (Botany Petcare Co., Ltd.) 2) E-commerce business, where sales revenue increased by 95.7% from BOOSTED NRF Corp., which comes from the sale of products under the Prime Labs brand, SOL Trading, and WellPath, including the recognition of income from Indeem Group Co., Ltd. continuously since the 1st quarter of 2022. However, the revenue added from such factors can compensate for the lower sales of plant food products.
While the Group's first nine-month net profit was 246.7 million Baht, an increase of 188.2%, which is a net profit from normal operations of 131.2 million Baht, an increase of 45.7% compared to the same period last year, which is a growth according to the net profit from normal operations that increased. The weakening baht caused an increase in sales in the Ethnic Foods group and recognized revenue from pet food sales in 2022, as well as selling products from the e-commerce business group under the brands Prime Labs, SOL Trading, and WellPath, as well as Indeem Group, also included is a loss share from Plant & Bean Ltd. that decreases, increasing the net profit margin from normal operations. While EBITDA was 471.0 million baht, an increase of 78.8% compared to the previous year. It increased with improved performance and recognized the profit from the sale of investments in GTH and Nove Eats in the past quarter.
"Due to the Ministry of Public Health's removal of cannabis as a type 5 drug, the company has sold GTH's investment in a 65% shareholding ratio. The demand in this industry has moved from hemp to cannabis, which is not consistent with the main business and the company's strategy. Including the uncertainty of the law related to this, the company, therefore, sold the investment in GTH for the maximum benefit of the company and shareholders. The sale of Nove Eats' investments is simply a resale to the company's former co-founder, resulting in a decrease in NRF shareholding from 51% to 8% and is regarded as a restructuring of the plant protein food business group. However, we will continue to cooperate with and support Nove Eats as a co-founder and shareholder, both in production and product development, to support the continuous growth of Nove Eats, including cooperation in the expansion plan to the United States" Mr. Dan said.
The Chief Executive Officer added that in the past, Neutra Regenerative Protein Company Limited (NRPT), a joint venture between Nov Food Company and Innobic (Asia) Co., Ltd., signed a Memorandum of Understanding with PTT Oil and Retail Business Company Limited (OR) to study the possibility of developing plant-based protein businesses and foods of the future. By focusing on developing products and retailer business models for plant-based food retailers that are suitable for OR's retail stores and gas stations, to fulfil all the needs of consumers, make Thai people's lives convenient, and give them options to consume food that is beneficial to both their health and the environment. It is a collaboration to develop the business model of retail stores and plant-based menus, which will develop special menus that will be sold at Cafe Amazon within this year and expand alt.Eatery, a flagship store, to pilot at the first OR gas station at the Vibhavadi Rangsit branch by 2023. However, the cooperation between NRPT, the developer and distributor of plant protein products, and retail business experts within this gas station, according to the intentions of both organizations, has a significant goal of developing and expanding the retail business.
As for the progress of the launch of the Botany Petcare pet food factory, which is a pet food and snack factory, currently, the factory has completed the construction, including the installation of machines, and received GMP and HACCP licenses. Exports are expected to begin in the fourth quarter of 2022. At the same time, the pet food factory can expand its business by becoming an original equipment manufacturer (OEM) in pet food, both domestically and internationally.