- 39% Increase in Revenue in Fiscal Year 2021 Compared to
Fiscal Year 2020
- 10% Expansion in Gross Profit Fiscal Year 2021 Compared to
Fiscal Year 2020
- 188% Increase in Net Income in Fiscal Year 2021 Compared to
Fiscal Year 2020
- $159.9 Million in Total
Stockholders' Equity at September 30,
2021 Compared to $28.3 Million
at September 20, 2020
LISHUI, China, Jan. 26, 2022 /PRNewswire/ -- Farmmi, Inc.
("Farmmi" or the "Company") (NASDAQ: FAMI), an agriculture products
supplier in China, today announced
its financial results for the twelve months ended September 30, 2021.
Ms. Yefang Zhang, Farmmi's
Chairwoman and CEO, commented, "We achieved record Company revenue
and gross profit for the fiscal year 2021, reflecting momentum in
our business, and our success at both securing inventory and
delivering it to customers on time, despite the global supply chain
disruptions. We drove significant improvements in our financial
results, while also launching a diversification initiative that
will be key to our longer term success. We are benefitting from a
higher order volume and expanded relationships because we have been
able to secure the quality agricultural products customers want at
scale, helped by our end-to-end supply chain. We expect this
business momentum will continue into the New Year, which will help
us further grow our sales."
Ms. Yefang Zhang, Farmmi's
Chairwoman and CEO, added, "We unveiled our ambitious
diversification and growth strategy in September 2021, which was designed to deliver
greater opportunities for revenue and profit growth, as we work to
build on the strong platform and demand we are continuing to
benefit from in the edible fungi market worldwide. Importantly, our
stronger balance sheet gives larger domestic and international
customers added confidence in Farmmi as a partner and allows us to
accelerate investments in our organic business, while also pursuing
strategic M&A opportunities."
Looking forward, Ms. Yefang
Zhang, Farmmi's Chairwoman and CEO, concluded, "We are
focused on creating greater value for Farmmi and all shareholders,
and plan to be aggressive. We do not think our current stock price
accurately reflects our revenue, cash position, improved financial
performance, or the Company's attractive prospects for accelerated
growth. We are working to close the gap between our valuation and
the Company's compelling fundamentals. We expect that as we
continue to show business progress and deliver improved financial
results, our performance will be more accurately reflected in the
Company's valuation. We thank our shareholders for their continued
support during this period and assure them we are focused and
aligned with them."
Financial Highlights
|
|
For the Twelve
Months Ended September 30,
|
|
($ millions,
except per share and percentage data)
|
|
2021
|
|
|
2020
|
|
|
Change
|
|
Revenues
|
|
$
|
39.29
|
|
|
$
|
28.36
|
|
|
|
38.5
|
%
|
Shiitake
|
|
|
20.50
|
|
|
|
15.10
|
|
|
|
35.7
|
%
|
Mu Er
|
|
|
16.52
|
|
|
|
12.08
|
|
|
|
36.8
|
%
|
Other edible fungi
and other agricultural products
|
|
|
2.27
|
|
|
|
1.18
|
|
|
|
92.0
|
%
|
Gross
profit
|
|
|
5.11
|
|
|
|
4.65
|
|
|
|
9.8
|
%
|
Gross
margin
|
|
|
13.00
|
%
|
|
|
16.40
|
%
|
|
|
(3.4) pp*
|
%
|
Income from
operations
|
|
$
|
2.85
|
|
|
$
|
2.27
|
|
|
|
25.8
|
%
|
Interest
Expense
|
|
|
0.07
|
|
|
|
0.17
|
|
|
|
(56.2)
|
%
|
Net Income
attributable to Farmmi, Inc.
|
|
|
2.36
|
|
|
|
0.82
|
|
|
|
187.8
|
%
|
Basic and diluted
income per share
|
|
|
0.02
|
|
|
|
0.07
|
|
|
|
(0.05)
|
|
*Notes: pp represents
percentage points
|
Revenues
Total revenues for the year ended September 30, 2021 increased by $10.93 million, or 38.5%, to $39.29 from $28.36
for the year ended September 30,
2020. The increase in sales primarily reflects the increase
of both sales volume and average unit sales price of the Company's
agricultural products, as it continues to expand its brand building
and sales efforts in the domestic China market and in important international
markets, including the U.S., Canada, Japan, the Middle
East and others, while also benefitting from a recovery of
the market since the containment of the major COVID-19 outbreak in
the PRC in April 2020.
Revenue from sales of Mu Er increased by $4.44 million, or 36.8%, to $16.52 million for the year ended September 30, 2021 from $12.08 million for the year ended September 30, 2020, with 1,205 tons sold for the
year ended September 30, 2021,
compared to 1,000 tons for the year ended September 30, 2020. Revenue from sales of
Shiitake increased by $5.40 million,
or 35.7%, to $20.50 million for the
year ended September 30, 2021 from
$15.10 million for the year ended
September 30, 2020, with 1,515 tons
sold for the year ended September 30,
2021, compared to 1,227 tons for the year ended September 30, 2020. Revenue from sales of other
edible fungi and other agricultural products increased by
$1.09 million, or 92.0%, to
$2.27 million for the year ended
September 30, 2021 from $1.18 million for the year ended September 30, 2020, with 5,587 tons sold for the
year ended September 30, 2021,
compared to 43 tons sold for the year ended September 30, 2020.
Cost of Revenues
Cost of revenues increased by $10.47
million, or 44.1%, to $34.18
million for the year ended September
30, 2021 from $23.71 million
for the year ended September 30,
2020, reflecting the increase in sales volume.
Cost of revenues of Shiitake increased by $4.95 million or 39.1%, to $17.64 million for the year ended September 30, 2021 from $12.69 million for the year ended September 30, 2020. Cost of revenue of Mu Er
increased by $4.29 million or 42.4%
to $14.41 million for the year ended
September 30, 2021 from $10.12 million for the year ended September 30, 2020. Cost of revenue of other
edible fungi and agricultural products increased by $1.22 million, or 134.7%, to $2.13 million for the year ended September 30, 2021 from $0.91 million for the year ended September 30, 2020.
Gross Profit
Overall gross profit increased by $0.46
million or 9.8%, to $5.11
million for the year ended September
30, 2021 from $4.65 million
for the same period of the last year. Gross profit from sales of
Shiitake increased by $0.44 million
or 18.3%, to $2.85 million for the
year ended September 30, 2021 from
$2.41 million for the year ended
September 30, 2020. Gross profit from
sales of Mu Er increased by $0.15
million or 7.8%, to $2.12
million for the year ended September
30, 2021 from $1.97 million
for the year ended September 30,
2020. Gross profit from sales of other edible fungi and
agricultural products decreased by $0.14
million or 50.0%, to $0.14
million for the year ended September
30, 2021 from $0.27 million
for the year ended September 30,
2020.
Overall gross margin decreased by 3.4 percentage points to 13.0%
for the year ended September 30, 2021
from 16.4% for the year ended September 30,
2020. The decrease in overall gross margin reflects product
mix and strategic pricing to stimulate customer orders.
Operating Expenses
Selling and distribution expenses increased by $0.03 million or 13.2%, to $0.29 million for the year ended September 30, 2021 from $0.26 million for the year ended September 30, 2020. General and administrative
expenses increased by $1.53 million
or 117.1%, to $2.84 million for the
year ended September 30, 2021 from
$1.31 million for the year ended
September 30, 2020. The increase
reflects higher costs in support of the higher sales volume, as the
Company continues to grow sales, while also benefiting from a
recovery of the market since the containment of the major COVID-19
outbreak in the PRC in April
2020.
Interest expense was $0.07 million
for the year ended September 30,
2021, as compared to $0.17
million for the year ended September
30, 2020. Amortization of debt issuance costs was
$0.00 million for the year ended
September 30, 2021, as compared to
$1.09 million for the year ended
September 30, 2020.
Other Net Expense
Other net expense was $0.38
million for the year ended September
30, 2021, as compared to other net income of $0.09 million for the year ended September 30, 2020. The net expenses were mainly
attributable to exchange losses arising from translation and
currency conversion from the United
States dollar to Renminbi.
Net Income
Net income attributable to common shareholders for the year
ended September 30, 2021 was
$2.36 million or $0.02 per basic and diluted share, as compared to
net income of $0.81 million or
$0.07 per share for the year ended
September 30, 2020. The Company had
104,455,189 shares outstanding on a diluted basis at September 30, 2021, compared to 16,244,856 at
September 30, 2020.
Financial Condition
As of September 30, 2021, the
Company had a cash balance of $59.25
million. As of September 30,
2021, the Company had advances to suppliers of $66.72 million, which were made based on sales
orders received or expected to be received in the future months. As
of January 25, 2022, approximately
$35.4 million, or 53.1% were
utilized, with the remaining balance expected to be fully utilized
by September of 2022. As of September 30, 2021, the Company
had an accounts receivable balance of $24.47
million, of which $14.8
million or 60.6% was collected as of today, with the
remainder expected to be collected by March of 2022.
About Farmmi, Inc.
Farmmi Inc. (NASDAQ: FAMI) was
Established in 1998, formerly known as Zhejiang Forasen Food Co.,
Ltd., which is an agricultural e-commerce technology enterprise.
Headquartered in Lishui, Zhejiang,
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 press release contains
forwarding-looking statement within information about Farmmi Inc.'s
views on its future expectations, plans and prospects. We remind
you not to rely too much on these forward-looking statements. Due
to various of factors, actual results may differ materially from
the anticipated results, including but not limited to its ability
to raise additional funds, maintain and develop business,
variability of business performance, ability to maintain and
enhance its brand, development and launch of new products and
services, successful integration of acquired companies,
technologies and assets into its product and service portfolio,
marketing and other business development initiatives, industry
competition, general government regulation, economic conditions,
the impact of the novel coronavirus pneumonia, dependence on key
personnel, attracting, hiring and retaining personnel with the
skills and experience required to meet customer requirements, and
the ability to protect their intellectual property rights. Farmmi
Inc. encourages you to review other factors that may affect its
future results in its registration statement and other documents
submitted to the U.S. Securities and Exchange Commission. The
forward-looking statements in this press release are based on
current expectations, our company does not undertake the obligation
to update these forward-looking statements.
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SOURCE Farmmi, Inc.