Business
Farmmi Reports Financial Results for the First Six Months of Fiscal Year 2020
Minimizes Financial Impact of COVID-19; Restores Operations to Normal Achieves Breakeven Despite Lower Revenue Maintains Healthy Balance Sheet to Support
About this update from Farmmi, Inc. Ordinary Shares
[{"type":"text","content":"Minimizes Financial Impact of COVID-19; Restores Operations to Normal Achieves Breakeven Despite Lower Revenue Maintains Healthy Balance Sheet to Support Long-Term Growth Plan LISHUI, China, Sept.28, 2020 /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, 2020.\nMs. Yefang Zhang, Chairwoman and CEO of the Company stated, \"We are proud of the Farmmi team for its commitment and resolve during the global COVID-19 pandemic. We were faced with considerable uncertainty, that continued through March, as our operations gradually returned to normal with the logistic challenges mostly resolved. During this difficult period, our priority remained on the health and safety of our employees and the chain of control across our supply chain. With the added stresses on the entire food supply chain, our role in providing fresh, high quality agricultural products became even more critical.\"\nMs. Zhang continued: \"Our focus has always been long-term growth as we execute on our business strategy, which calls for increasing market share, expansion of our supply chain and sales network, and ability to secure high quality raw materials at competitive prices. The main catalysts for our long-term growth remain in place giving us confidence moving in to the second half of 2020. Importantly, we expect sales of our edible fungi products will grow in the coming years. Consumptions of edible fungi in China has been rising significantly and the market remains underserved, as does the international market led by the U.S., Japan and Canada. Our steady progress can be seen in the numerous contracts we have been awarded from both existing and new customers for our sought-after agricultural products. Our focus is on continued execution as we leverage our strong brand and supply channels to drive further growth and improvement of our financial metrics.\"\nFinancial Highlights\nFor the Six Months Ended March 31,\n($ millions, except per share data)\n2020\n2019\n%Change\nRevenues\n$\n13.58\n$\n14.39\n(5.63)%\nShiitake\n7.35\n8.35\n(11.98)%\nMu Er\n5.76\n5.17\n11.41%\nOther edible fungi and other agricultural products\n0.47\n0.87\n(45.98)%\nGross profit\n2.12\n2.54\n(16.54)%\nGross margin\n15.59%\n17.68%\n2.09pp*\nIncome from ...