Mushroom Processor Farmmi Reports Higher Revenue
The company said its revenue jumped nearly 12 percent to $29.8 million in its fiscal year ended September, driven by an increase in income from sales of Shiitake and Mu Er.
Farmmi Inc. (Nasdaq: FAMI), which processes and packages mushrooms for sale to distributors in China, announced its revenue jumped nearly 12 percent to $29.8 million in its fiscal year ended September, driven by an increase in income from sales of Shiitake and Mu Er.
Driven in part by three new sales contracts signed between March and June in 2018, sales volume of Shiitake climbed up to 1,299 tons for the 12 months ended Sept. 30 from 1,277 tons for the same period a year earlier.
Farmmi's net income, however, declined slightly more than than 1 percent to $3.23 million, or 29 cents per fully diluted share, for the year, compared with $3.27 million from a year ago, or 33 cents per fully diluted share.
"Coupled with the reorganization of our online store operating team in March 2018, our online sales have been increasing since April 2018," said Yefang Zhang, chairwoman and CEO of the company. "Farmmi Jicai, our online store designed for centralized procurement, targeting small wholesale clients, such as restaurants and retailers began generating revenue."
"Farmmi Liangping Market, another online store, supplies geographical indication agricultural products, among other products," Zhang continued. "We are optimistic about the prospects of these platforms following the efforts we have made to strengthen our relationships with our family farm suppliers, to provide attractive products and a unique experience to our customers."
Farmmi (Nasdaq: FAMI), which went public on Feb. 16 at $4 per share, closed today up nearly 3 percent, or 11 cents, to $4.19 per share in New York.
With an initial public offering of 1.68 million shares, Farmmi raised $6.7 million through its IPO.
Headquartered in Zhejiang, Farmmi is an agricultural products supplier and primarily processes and sells Shiitake mushrooms, Mu Er mushrooms, other edible fungi, and other agricultural products. In addition, Farmmi Liangpin Market, the company's e-commerce platform, provides an opportunity for consumers to access locally sourced agricultural products.