NRF expands new business to capture the growing e-commerce market, invests more than 135 million baht to invest in WellPath project

Mr. Dan Pathomwanich, Chief Executive Officer of NR Instant Produce Public Company Limited or NRF, revealed that overall operating results for the 2nd quarter (April-June) the company had revenue from sales. 448 million baht, an increase of 37% compared to the same period last year. with sales revenue of 327 million baht, as a result of higher growth in product groups under Thai food and local food businesses (Ethnic Food) and Plant-based Food from North America and Europe and increased revenue from Boosted NRF Corporation and City Food Company.

Compared to the previous quarter Sales revenue in 2Q21 decreased slightly, mainly due to revenue from Thai food and local food business. including reduced plant protein diet due to delays in the global transport system and ship shortages in June As a result, exports cannot be delivered as planned in the second quarter. including operating expenses Both production and stock have already taken place this quarter. As a result, the revenue that should come in 2Q21, worth around 100 million baht, was not as expected. However, NRF’s products awaiting delivery in June, worth 80 million baht, have already been delivered in July and will be revenues coming in in 3Q21 instead. If the global transportation system is not disrupted, the company can All planned deliveries can be made within this quarter. This will result in earnings in this quarter that will exceed the company’s expected target and will be a new record in terms of both the company’s revenue and profit.

Mr. Dan said that the net profit from normal operations of the company (Normalized Net Profit) in the second quarter of 2021 was 29 million baht, a decrease of 38.3% compared to the same period last year. Earnings before tax, interest, depreciation and amortization (EBITDA) stood at 91 million baht, an increase of 28.2% from the same period last year. The net profit margin from normal operations (Net Profit Margin) was 6.2%, down from 13.9% in the same period last year due to the recognition of an increased share of loss from Plant and Bean Ltd. that received affected by the spread of COVID-19 This has delayed the process of obtaining a license from the British Retail Consortium (BRC). which will be able to start production immediately And expect to see an increase in sales in 4Q21.

As for the operating results in the first half of this year (January-June 2021) The Company had revenue from sales of 920 million baht, an increase of 55.4% compared to the same period of the previous year with revenue of 592 million baht, with the proportion of revenue from Thai food and local food products (Ethnic) Food) 82%, Plant-based Food 5%, Functional Products 2%, and the main growth is E-Commerce Platform business, accounting for 11% of revenue. because the company Increased revenue from Boosted NRF Corporation, acquired Prime Labs products earlier this year. Including increased income after buying assets under the SOL Trading brand, which has an e-commerce platform for selling by increasing the opportunity to sell products in other product categories. to existing customers and can be extended to future investment plans, such as contracting as a product manufacturer (OEM), as well as expanding the V-shape business, etc.

Meanwhile, the net profit from normal operations of the Company was 98 million baht, an increase of 5.4% from the same period last year that made 93 million baht. EBITDA was at 174 million baht, an increase of 32.8% from the same period last year. which made 131 million baht, while the net profit margin from normal operations (Net Profit Margin) was 10.3%, a decrease from the same period of the previous year that was 15.4% due to the recognition of increased investment-related expenses. including increased costs of City Food and BOOSTED NRF Corp.

Dan said that in the midst of the COVID-19 situation epidemic and during the lockdown period, the company sees the potential of the e-commerce market that continues to grow. without stopping to develop new products Including looking for partners and additional business opportunities to grow through e-commerce, which in the past has acquired assets under the brand SOL Trading under BOOSTED NRF Corporation with an investment of US$ 2.92 million. Its products include The Cocoa Trader, Fossil, Power Caribbean Cacao, and Aspen Naturals, which are the leading health foods sold on the Amazon.com platform. A total of 45 products, such as cocoa powder, gelatin powder, and gelatin are currently sold. Sold in the United States, where the company recognized revenue from both Prime Labs and SOL Trading in this quarter. As a result, e-commerce business grew by more than 91.4% from Q1/21.

Recently, the Board of Directors meeting Approved the investment in WellPath project, which is an investment under Boosted NRF Corporation to support the expansion and extension of the e-commerce strategy following Prime Labs and SOL Trading projects. The investment is an acquisition of intellectual property. trademark Knowledge and expertise in the business of specialized commodities (know-how) and other intangible assets. related to business operations WellPath’s brands include Pure Apple Cider Vinegar Gummies, Boost Elderberry Gummies, Zen Anxiety and Stress Relief Supplement and Vital Turmeric Gummies, which are the leading health food products sold on Amazon.com and have been on the market for over 6 years. Currently, 11 products (SKUs) are distributed, such as vitamins and dietary supplements, jelly, and distributed in the United States. The investment value does not exceed USD 4.06 million or approximately 135.3 million baht. The transaction is expected to be completed by the third quarter of 2021. However, NRF continues to focus on growing its e-commerce business and aims to negotiate 3 acquisitions by 2021, resulting in This year’s income is not less than 50% higher than last year.