Key Takeaways:
- Village Farms’ Q2 2025 results include $40 million cash and 37.9% stake in Vanguard Food LP from produce segment privatization
- Consolidated net sales up 12% year-over-year to $59.9 million
- Canadian cannabis gross margin rises to 39% with strong international sales growth
- Netherlands operations expand market share to over 80% of participating coffeeshops
- Company projects continued profitable growth into 2026 with new capacity expansions
Transaction Drives Stronger Financial Position
Village Farms International, Inc. announced second quarter 2025 results reflecting the impact of its recently completed produce segment transaction. On May 30, the company closed the privatization of certain produce operations, receiving $40 million in cash and a 37.9% equity stake in Vanguard Food LP. The transaction shifted some produce operations into discontinued status, with results adjusted accordingly.
President and CEO Michael DeGiglio said, “[Our] second quarter performance reflected record levels of profitability since we expanded into cannabis in 2017, and eclipsed several records set during our nearly 20-year history as a publicly traded company. Our teams are excelling during a period of rapid change for the organization, and energized by the many pockets of upside opportunity that we see across virtually every aspect of our business.”
Village Farms Cannabis Segments Show Strong Gains
Canadian Cannabis Performance
Net sales in Canadian cannabis rose 9% to $44.5 million, driven by a 690% increase in international medical exports. Gross margins increased from 26% to 39%, and adjusted EBITDA grew 146% to $11.9 million. The company maintained a top-three market share nationally and the leading position in dried flower year-to-date through July.
Netherlands Cannabis Expansion
Netherlands-based Leli Holland reported $2.5 million in net sales, with products now in 82.5% of participating coffeeshops. Phase II facility construction is on schedule for Q1 2026, projected to increase production capacity fivefold.
U.S. and Remaining Produce Operations
In the U.S., Balanced Health Botanicals posted $3.8 million in net sales and a smaller net loss than the prior year. The company’s Texas medicinal marijuana license application remains under review.
Continuing produce operations, now centered on the Delta 1 and Delta 2 greenhouses, generated $8.6 million in sales. A vendor settlement and operational improvements contributed to a turnaround in profitability, with adjusted EBITDA rising to $6.4 million.
Village Farms’ Outlook and Strategic Direction
Village Farms expects sustained growth, supported by capacity expansions in Canada and the Netherlands and continued momentum in international cannabis exports. The company also sees long-term value potential from its equity stake in Vanguard Food LP and possible future uses for U.S. greenhouse assets.
DeGiglio emphasized that the company is generating positive free cash flow, maintaining a strong balance sheet, and is positioned to make additional growth investments with favorable returns.
Village Farms International
Village Farms International operates as a vertically integrated Controlled Environment Agriculture (CEA) company, supplying fresh produce and plant-based consumer packaged goods (CPG) across North America. The company is active in both traditional food markets and emerging categories such as cannabis and CBD.
Its Canadian subsidiary, Pure Sunfarms, is among the largest greenhouse-based cannabis producers, while ROSE LifeScience in Québec supports cannabis commercialization efforts. In the U.S., Balanced Health Botanicals manages CBD products and e-commerce. Village Farms also plans to enter the U.S. high-THC cannabis market, leveraging over 5.5 million sq ft of greenhouse space in Texas, pending regulatory developments.
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