Farmmi Reports Fiscal Year 2020 Financial Results
Farmmi, Inc. (NASDAQ: FAMI) reported a fiscal year 2020 net income of $0.82 million, or $0.05 per share, compared to a net loss of $0.31 million, or $0.03 per share in the previous year. Despite a revenue decline of 2.19%, totaling $30.17 million, the company managed to grow its customer base, with one customer now accounting for over 10% of total revenue. Key product revenue highlights included a 5.51% increase in Mu Er sales while Shiitake sales decreased by 6.77%. Farmmi aims for future growth by diversifying its customer base and expanding international sales.
- Achieved fiscal year 2020 net income of $0.82 million compared to a net loss of $0.31 million in 2019.
- Continued to grow customer base with one customer accounting for over 10% of total revenue.
- Revenue from Mu Er increased by 5.51%.
- Total revenues decreased by 2.19% to $30.17 million from $30.84 million in 2019.
- Revenue from Shiitake mushrooms decreased by 6.77%.
- Achieves Fiscal Year 2020 Net Income Per Diluted Share of
$0.05 Compared to a Net Loss of$0.03 Per Diluted Share for Fiscal Year 2019 - Continues to Grow Customer Base with Another Customer Now Accounting for More than
10% of Revenue
LISHUI, China, Jan. 29, 2021 /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, 2020.
Ms. Yefang Zhang, Chairwoman and CEO of the Company stated, "We are pleased with our team's business development success in a challenging year, as we achieved positive net income for the year ended September 30, 2020 compared to a net loss last year. By working closely with our customers and supply chain, we tried to reduce the impact of the widespread COVID-19 closures and ongoing business disruptions. This was not an easy task but we were able to stabilize our business, while reducing costs to meet the lower near-term demand level. Longer term, we expect a resumption in growth and are taking actions now to position our company. For example, we continue to diversify our customer base as part of our overall growth strategy, led by the popularity of our healthy, vitamin-rich shiitake and mu er mushrooms. This includes expanding another customer to account for more than
Ms. Zhang continued: "Having spent the past 20 years managing operations, building long-term customer relationships and establishing a global supply chain, I can say without hesitation that our prospects are brighter today than any time in recent memory. Our competitive position is strong, reinforced by our extensive, high quality agricultural offerings, global brand and track record. Even our physical location in the densely populated, economically strong city of Lishui benefits us given its impressive history of cultivating edible fungi for over 1,800 years, the supportive government, established infrastructure and skilled workforce. We are in the midst of a major shift in dietary priorities, where plant based options are becoming commonplace. Edible fungi have an inherent advantage given their rich flavor, gentle texture and stability conducive to shipping long distances without spoilage, which is ideal as we start to shift more of our revenue outside of domestic China – the world's largest producer and consumer of edible fungi – into the U.S., Japan, Canada, Israel and other countries."
Financial Highlights
For the Twelve Months Ended September 30, | |||||||||||
($ millions, except per share and percentage data) | 2020 | 2019 | Change | ||||||||
Revenues | $ | 30.17 | $ | 30.84 | (2.19)% | ||||||
Shiitake | 16.69 | 17.89 | (6.77)% | ||||||||
Mu Er | 12.30 | 11.66 | |||||||||
Other edible fungi and other agricultural products | 1.18 | 1.29 | (8.21)% | ||||||||
Gross profit | 4.96 | 5.42 | (8.44)% | ||||||||
Gross margin | 1.12 pp* | ||||||||||
Income from operations | $ | 2.10 | $ | 3.04 | (30.79)% | ||||||
Interest Expense | 0.27 | 1.20 | (77.3)% | ||||||||
Net Income (loss) attributable to Farmmi, Inc. | 0.82 | (0.31) | 1.12 | ||||||||
Basic and diluted income (loss) per share | 0.05 | (0.03) | 0.08 | ||||||||
*Notes: pp represents percentage points
Revenues
Total revenues for the year ended September 30, 2020 decreased by
Revenue from sales of Mu Er increased by
Cost of Revenues
Cost of revenues decreased by
Cost of revenues of Shiitake decreased by
Gross Profit
Overall gross profit decreased by
Overall gross margin decreased by 1.12 percentage points to
Expense Reductions
The Company reduced costs to reflect its lower sales level related to shelter-at-home and travel restrictions imposed by the Chinese government due to the COVID-19 outbreak, combined with lower international sales, and targeted reductions in headcount and salaries. Selling and distribution expenses decreased by
Interest expense was
Other Income
Other income was
Net Income
Net income attributable to common shareholders for the year ended September 30, 2020 was
Financial Condition
As of September 30, 2020, the Company had a cash balance of
About Farmmi, Inc.
Headquartered in Lishui, Zhejiang, Farmmi, Inc. (NASDAQ: FAMI), is a leading agricultural products supplier, processor and retailer of Shiitake mushrooms, Mu Er mushrooms and other edible fungi. 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. 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.
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SOURCE Farmmi, Inc.
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