Nature's Miracle Reports Second Quarter 2024 Financial Update

Second Quarter Revenue Increased 75% YoY and 54% Sequentially to $3.4 Million

New Distribution Agreements for Complementary Products and Product Launches Enhance Portfolio

ONTARIO, Calif., Aug. 16, 2024 /PRNewswire/ -- Nature's Miracle Holding Inc. (NASDAQ: NMHI) ("Nature's Miracle" or the "Company"), a leader in vertical farming technology and infrastructure, today reported its financial and operational update for the second quarter ended June 30, 2024.

Second Quarter 2024 and Subsequent Business Updates

• Revenue of $3.4 million, a 75% increase from the same period in 2023, and a 54% increase compared to the first quarter of 2024.
• Gross margin improved 800 basis points to 13.3% from the same period in 2023.
• Launched and completed first shipment of Efinity brand Smart Dehumidifier product.
• Developed a strong pipeline of grow light orders within the energy rebate market with total grow light purchase orders of $5 million in July.

Management Commentary

James Li, Chairman and Chief Executive Officer of Nature's Miracle, commented, "During the first full quarter as a public company, Nature's Miracle recognized significant revenue growth, strong new order trends for our existing products and diversification of our portfolio with the launch of new products and new distribution partners. In the second quarter, we achieved revenue growth of 75% from the prior year period, which was driven by strong demand from the energy rebate market for LED grow light products and increases in our marketing team and efforts. Our 800-basis point expansion of gross margin was the result of higher margins realized through the Company's Efinity brand products, favorable pricing trends from Asian manufacturers and incentive costs to the Company for operating in the energy rebate market. Taken together, we are rapidly growing our footprint across the North American market with our vertically integrated approach of products and solutions for the CEA market."

"We are pleased with our progress through the first half of 2024, and at this early stage of development as a public company. Our strategic focus is on continuing to build a foundation of existing, new and licensed products as catalysts for revenue growth in the second half of 2024 and beyond. The record purchase orders received in July are an indication that Nature's Miracle is well positioned in the market and with our effective sales and marketing channels, we will seek to further capitalize on this momentum. A defining component of our sales and marketing efforts focuses on reinforcing our distinct position as a fully integrated provider of comprehensive vertical farms," concluded Mr. Li.

Second Quarter 2024 Financial Summary

For the second quarter of 2024, revenue totaled $3.4 million, increasing 75% from $1.9 million in the prior year period. The increase was primarily attributable to an increase in demand of our Efinity LED light products from the energy rebate market and the increases in our sales force as catalyst for this growth.

Gross profit for the second quarter of 2024 totaled $0.5 million or 13.3% of revenue, as compared to $0.1 million or 5.2% of revenue in the prior year period. The increase in gross profit as a percentage of revenue was primarily attributable to the higher margin component of our Efinity brand products and the finance structure of the energy rebate market.

Selling, general and administrative expenses increased to $1.5 million compared to $0.5 million in the prior year period. The increase was primarily due to public company costs, higher spend on staffing related, legal, accounting and other professional fees as well as stock compensation charges.

Net loss for the second quarter of 2024 totaled $1.8 million, or $(0.07) per share, and net loss of $0.4 million, or $(0.02) per share in the prior year period.

Cash and cash equivalents totaled $30,532 at June 30, 2024, compared to $221,760 at December 31, 2023. Subsequent to quarter end, on July 29, 2024, the company closed a public offering for aggregate gross proceeds of $1.2 million.

About Nature's Miracle Holding Inc.

Nature's Miracle (NASDAQ: NMHI) is a growing agriculture technology company providing equipment and services to growers in the Controlled Environment Agriculture ("CEA") industry which also includes vertical farming in North America. Nature's Miracle offers hardware to design, build and operate various indoor growing settings including greenhouse and indoor-growing spaces. Nature's Miracle, through its two wholly-owned subsidiaries Visiontech Group, Inc. and Hydroman, Inc., provides grow lights as well as other hydroponic products to hundreds of indoor growers in North America. For more information visit  www.Nature-Miracle.com.

Forward-Looking Statements

The information in this press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "intends," "may," "will," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release may include, for example: the intended use of proceeds from the offering; successful launch and implementation of Nature's Miracle's joint projects with manufacturers and other supply chain participants of steel, rubber and other materials; changes in Nature's Miracle's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; Nature's Miracle's ability to develop and launch new products and services; Nature's Miracle's ability to successfully and efficiently integrate future expansion plans and opportunities; Nature's Miracle's ability to grow its business in a cost-effective manner; Nature's Miracle's product development timeline and estimated research and development costs; the implementation, market acceptance and success of Nature's Miracle's business model; developments and projections relating to Nature's Miracle's competitors and industry; and Nature's Miracle's approach and goals with respect to technology. These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing views as of any subsequent date, and no obligation is undertaken to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: the ability to maintain the listing of the Company's shares on Nasdaq; changes in applicable laws or regulations; the effects of the coronavirus (COVID-19) and any future outbreaks on Nature's Miracle's business; the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; the risk of downturns and the possibility of rapid change in the highly competitive industry in which Nature's Miracle's operates; the risk that Nature's Miracle's and its current and future collaborators are unable to successfully develop and commercialize Nature's Miracle's products or services, or experience significant delays in doing so; the risk that the Company may never achieve or sustain profitability; the risk that the Company will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk that the Company experiences difficulties in managing its growth and expanding operations; the risk that third-party suppliers and manufacturers are not able to fully and timely meet their obligations; the risk that Nature's Miracle's is unable to secure or protect its intellectual property; the possibility that Nature's Miracle's may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties described in Nature's Miracle's filings from time to time with the SEC.

Contacts
George Yutuc
Chief Financial Officer
[email protected]

MZ North America
Shannon Devine / Rory Rumore
Main: 203-741-8811
[email protected] 

SOURCE Nature's Miracle Holding Inc.