Financial Highlights (six months ended March 31, 2021 compared to March 31, 2020)
- 31% Increase in Revenue; Shiitake Sales Increase 38%; Mu Er
Sales Increase 27%
- 41.6% Increase in Gross Profit
- Net Income Expands to $1.36
Million or $0.07 per Basic and
Diluted Share from Year Ago Loss
- Company Expects Sales Momentum to Continue in Second
Half
LISHUI, China, Aug. 2, 2021 /PRNewswire/ -- Farmmi, Inc.
("Farmmi" or the "Company") (NASDAQ: FAMI), an agriculture products
supplier in China, today announced
its financial results for the six months ended March 31, 2021.
Ms. Yefang Zhang, Farmmi's
Chairwoman and CEO, commented, "We are very pleased with our strong
revenue growth and surge in profitability. We successfully
worked with our supply chain and customers to meet demand levels
that were moving up and down with the COVID-19 lockdowns. Our
efforts paid off and we achieved impressive growth in our core
Shiitake and Mu Er businesses, as we continue to leverage our
competitive advantages, including premium product quality, sought
after production locations and strong supplier relationships.
Importantly, we significantly strengthened our balance sheet and
now have the resources to support our accelerated long-term growth
strategy."
Ms. Zhang continued, "Through our continued efforts to build our
e-commerce platform, expand internationally, and build upon
relationship with our suppliers, we expect to expand our product
lines and improve our brand awareness and customer loyalty, as we
meet higher customer demand levels and drive sales growth. We are
stepping up our sales and marketing activities, investing in our
supply chain and laying the groundwork for our long-term success
with our ongoing business transformation. We announced in May
that we will be leveraging more than two decades of experience in
China's agriculture industry, as
we build on Farmmi's core business of high quality agricultural
products to grow into a comprehensive service provider for the
agricultural industry chain. We took additional action in
June, with a major cooperation and strategic investment
announcement signaling our active expansion into the distribution
network of agricultural products, which we expect will further
strengthen our presence in the agricultural supply chain and open
additional profit improvement opportunities. Overall, we are
in a strong competitive position with considerable opportunities
for revenue and profit growth, as we remain focused on building
shareholder value."
Financial Highlights
|
|
For the Six Months
Ended March 31,
|
|
($ millions,
except per share and percentage data)
|
|
2021
|
|
|
2020
|
|
|
Change
|
|
Revenues
|
|
$
|
17.79
|
|
|
$
|
13.58
|
|
|
|
31.0
|
%
|
Shiitake
|
|
|
10.10
|
|
|
|
7.35
|
|
|
|
37.6
|
%
|
Mu Er
|
|
|
7.34
|
|
|
|
5.76
|
|
|
|
27.4
|
%
|
Other edible fungi
and other agricultural products
|
|
|
0.34
|
|
|
|
0.47
|
|
|
|
(27.3)
|
%
|
Gross
profit
|
|
|
2.99
|
|
|
|
2.11
|
|
|
|
41.6
|
%
|
Gross
margin
|
|
|
16.8
|
%
|
|
|
15.5
|
%
|
|
|
1.3pp*
|
|
Income from
operations
|
|
$
|
1.44
|
|
|
$
|
1.14
|
|
|
|
26.3
|
%
|
Interest
Expense
|
|
|
0.06
|
|
|
|
1.29
|
|
|
|
(95.3)
|
%
|
Net Income (loss)
attributable to Farmmi, Inc.
|
|
|
1.36
|
|
|
|
(0.06)
|
|
|
|
1.31
|
|
Basic and diluted
income (loss) per share
|
|
|
0.07
|
|
|
|
(0.00)
|
|
|
|
0.07
|
|
*Notes: pp represents percentage points
Revenues
Total revenues increased 31.0% to $17.79
million for the six months ended March 31, 2021, as compared to $13.58 million for the six months ended
March 31, 2020. The increased
sales volume is mainly attributable to the recovery of economic
activities in China since the end
of the COVID-19 lockdown in April
2020, which led to increased customer orders.
Revenue from sales of Shiitake increased 37.6% to $10.10 million for the six months ended
March 31, 2021 from $7.35 million for the six months ended
March 31, 2020, led by a 29.9%
increase in sales volume to 768 tons from 591 tons over the same
period. Revenue from sales of Mu Er increased 27.4% to
$7.34 million for the six months
ended March 31, 2021 from
$5.76 million for the six months
ended March 31, 2020, with a 17.4%
increase in sales volume to 559 tons from 476 tons over the same
period. Revenue from sales of other edible fungi and other
agricultural products decreased 27.3% to $0.34 million for the six months ended
March 31, 2021 from $0.47 million for the first six months
March 31, 2020, with a 38.8% decline
in sales volume to 11 tons from 18 tons over the same period.
Cost of Revenues
Cost of revenues increased by 29.0% to $14.80 million for the six months ended
March 31, 2021 from $11.47 million for the six months ended
March 31, 2020, in support of the 31%
increase in sales volume over the same period combined with a
higher cost of raw materials.
Cost of revenues of Shiitake increased 33.7% to $8.41 million for the six months ended
March 31, 2021 from $6.29 million for the six months ended
March 31, 2020. Cost of revenue
of Mu Er increased 27.2% to $6.11
million for the six months ended March 31, 2021 from $4.81
million for the six months ended March 31, 2020. Cost of revenue of other
edible fungi and agricultural products decreased 26.3% to
$0.27 million for the six months
ended March 31, 2021 from
$0.37 million for the six months
ended March 31, 2020.
Gross Profit
Overall gross profit increased by 41.6% to $2.99 million for the six months ended
March 31, 2021 from $2.11 million for the six months ended
March 31, 2020. Gross profit
from sales of Shiitake increased 60.7% to $1.69 million for the six months ended
March 31, 2021 from $1.05 million for the six months ended
March 31, 2020. Gross profit
from sales of Mu Er increased 28.3% to $1.22
million for the six months ended March 31, 2021 from $0.95
million for the six months ended March 31, 2020. Gross profit from sales of
other edible fungi and agricultural products decreased 30.8% to
$0.07 million for the six months
ended March 31, 2021 from
$0.10 million for the six months
ended March 31, 2020.
Overall gross margin increased by 1.3 percentage points to 16.8%
for the six months ended March 31,
2021 from 15.5% for the six months ended March 31, 2020. The increase in overall
gross margin is mainly attributable to the improvement in increased
gross margin of Shiitake, as a result of higher selling prices for
the six months ended March 31,
2021.
Expenses
Selling and distribution expenses increased 34.9% to
$0.19 million for the six months
ended March 31, 2021 from
$0.14 million for the six months
ended March 31, 2020. The increase is
primarily due to an increase in shipping expenses.
General and administrative expenses increased 103.4%, to
$1.68 million for the six months
ended March 31, 2021 from
$0.83 million for the six months
ended March 31, 2020. The increase is
primarily attributable to the share-based compensation expenses
arising from restricted shares granted to certain employees.
Interest expense decreased to $0.06
million for the six months ended March 31, 2021 from $1.29
million for the six months ended March 31, 2020. The decrease in interest
expense is primarily attributable to the decreased amortization of
debt issuance costs and decreased interest expense incurred for the
convertible notes during the six months ended March 31, 2021.
Net Income (loss)
Net income attributable to common shareholders for the six
months ended March 31, 2021 increased
to $1.36 million for the six months
ended March 31, 2021 from a net loss
of $0.06 million for the six months
ended March 31, 2020.
Financial Condition
As of March 31, 2021, the Company
had a cash balance of $16.0 million,
with total current assets of $46.1
million. Current liabilities amounted to $7.9 million at March 31,
2021.
About Farmmi, Inc.
Headquartered in Lishui, Zhejiang, Farmmi, Inc. (NASDAQ: FAMI), is an
agricultural products supplier, processor and retailer of Shiitake
mushrooms, Mu Er mushrooms, other edible fungi and other
agricultural products. For further information about the Company,
please visit: http://ir.farmmi.com.cn/.
Forward-Looking Statements
This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this announcement are forward-looking
statements, including the potential impact of COVID-19 on our
business within and outside of China and the size of the worldwide mushroom
market. These forward-looking statements involve known and unknown
risks and uncertainties and are based on current expectations and
projections about future events and financial trends that the
Company believes may affect its financial condition, results of
operations, business strategy and financial needs. Investors can
identify these forward-looking statements by words or phrases such
as "may," "will," "expect," "anticipate," "aim," "estimate,"
"intend," "plan," "believe," "potential," "continue," "is/are
likely to" or other similar expressions. The Company undertakes no
obligation to update forward-looking statements to reflect
subsequent occurring events or circumstances, or changes in its
expectations, except as may be required by law. Although the
Company believes that the expectations expressed in these
forward-looking statements are reasonable, it cannot assure you
that such expectations will turn out to be correct, and the Company
cautions investors that actual results may differ materially from
the anticipated results.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/farmmi-reports-first-half-2021-financial-results-301345787.html
SOURCE Farmmi, Inc.