On January 26, 2022, Farmmi Inc. (FAMI) reported its financial data for the fiscal year 2021. Consequently, the stock rebounded in the after-hours and soared high.
Shares of the supplier of the agricultural products were gloomy during regular trading. FAMI stock closed the regular session on Wednesday at $0.1980, suffering a loss of 1.79%. Following the announcement, the stock rebounded to add a good 26.26% at an after-hours volume of 14.75 million. Hence, FAMI was trading at $0.25 per share in the after-hours on Wednesday.
The China-based company, Farmmi Inc. has a market capitalization of $56.99 million. Currently, its 282.67 million outstanding shares stand at a year-to-date loss of 10.97% while losing 84.16% last year.
FAMI’s Fiscal 2021 Results
Total Revenue
In the fiscal year ended on September 30, 2021, FAMI generated total revenues of $39.29 million. Thus, marking an increase of 38.5% or $10.93 year over year, against $28.36 million in the year before. This increase was a result of the company’s continued brand building and sales in PRC along with crucial international markets. Further, the pandemic containment in the country also played a role in it.
Gross Profit
Moreover, the company also reported a gross profit of $5.11 million in fiscal 2021. Therefore, showing an increase of 9.8% or $0.46 million year-over-year, against $4.65 in the previous year.
Due to strategic pricing for stimulating customer orders and product mix, the overall gross margin was $13.0% for fiscal 2021. This shows a decrease of 3.4% from 16.4% in the previous year.
Net Income
Furthermore, FAMI reported a net income of $2.36 million (188% YOY growth) in fiscal 2021, against $0.81 million in the previous year. Resultantly, the net income per basic and diluted share was $0.02 in fiscal 2021, against $0.07 in fiscal 2020.
Cash Balance
At the end of the year, the company had $59.25 million in cash balance and $24.47 million in accounts receivable balance.
FAMI’s Latest International Order
On January 18, the company notified its subsidiary’s follow-on international product order. Zhejiang Farmmi Biotechnology Co., Ltd., which is a subsidiary of FAMI received another follow-on order from the company’s long-term customers. As per the order, the company’s products will be exported to Vancouver, Canada.
Conclusion
With the containment of the major pandemic situation in China, FAMI was able to build on its sales and brand image for continued growth. Hence, the company reported record revenue for fiscal 2021, making the stock soar in the after-hours on Wednesday.
