Farmmi Inc (NASDAQ: FAMI), a Chinese agricultural produce supplier, recently announced its financial results for the first six months of 2021. The report announced a 31% increase in revenue and a 41.6% increase in gross profit.
Resumption of economic activities
The company’s total revenues surged 31% to $ 17.79 million for the six months of 2021, compared to $13.58 million in a similar period last year. The increase in revenue is mainly associated with the recovery of economic activities in China after the COVID-19 lockdown.
According to the company chair and CEO, Ms. Yefang Zhang, Farmmi stakeholders are pleased with the company’s robust revenue growth and surge in profits. She said the team worked with the supply chain and customers to meet the varying demands that kept changing with the pandemic. Their efforts were successful and produced significant growth in its core Shiitake and Mu Er businesses, as it continued to leverage its competitive advantages, including sought-after production locations, premium quality of products, and strong supplier relationships. The company also strengthened its balance sheet and currently has the resources to support its accelerated long-term growth strategy.
Ms. Yefang continued by adding that through its continued efforts to build an e-commerce platform, build upon its relationship with its suppliers and expand internationally, she expects growth in its brand awareness and customer loyalty. In addition, the company is stepping up its sales and marketing activities, investing in its supply chain, and laying the foundation for its long-term success with its ongoing business transformation.
Looking into the future
In May, the company announced that it would be leveraging more than 20 years of experience in China’s agricultural industry. It builds on its core business of high-quality agricultural products into a comprehensive service provider. The company took a further step in June with significant cooperation and strategic investment announcement commencing its active expansion into the distribution network of agricultural products. It expects this will reinforce its presence in the agricultural product supply chain and increase its profitability.