Key Takeaways
- Village Farms reported consolidated Q1 2025 sales of $77.1M and a net loss of $6.7M, impacted by dust storms at Texas facilities.
- The company announced a $40M deal to privatize its Fresh Produce segment, forming a new joint venture, Vanguard Food LP, with private equity backing.
- Canadian cannabis operations delivered the best adjusted EBITDA in three years, with international exports up 285% YoY.
- Village Farms initiated recreational cannabis sales in the Netherlands and began construction on a Phase II facility.
- The company received a 180-day extension from Nasdaq to regain compliance with listing requirements.
Village Farms Q1 2025 Financial Overview
Quarterly Performance Impacted by Produce Segment and Currency Fluctuations
Village Farms International, Inc. (NASDAQ: VFF) reported financial results for the first quarter of 2025, posting $77.1 million in sales and a net loss of $6.7 million, or $0.06 per share. The loss was primarily attributed to a $4.3 million charge related to dust storms affecting its greenhouse facilities in Texas. Adjusted EBITDA dropped to $0.1 million compared to $3.6 million in Q1 2024.
CEO Michael DeGiglio commented, “Today’s announcements reflect a transformative change for Village Farms… allowing our proven cannabis teams to focus on growing our global cannabis business.”
Village Farms Restructures Fresh Produce Business
Strategic Shift to Cannabis Focus Through Vanguard Food LP Joint Venture
Village Farms entered into a definitive agreement to transfer key assets of its Fresh Produce division into a new private joint venture named Vanguard Food LP, backed by Sweat Equities and other private investors. Village Farms will retain a 37.9% ownership stake and receive $40 million in cash proceeds once the deal closes in Q2 2025.
The move is intended to unlock value and enable the produce business to scale with strategic partners while Village Farms focuses on its expanding cannabis operations.
Village Farms’ Canadian Cannabis Segment Achieves Major Milestones
Margin and Export Growth Drive Record EBITDA
Canadian cannabis sales totaled $34.8 million (C$50.0 million), with international medical export revenue growing 285% year-over-year. Gross margin improved to 36%, and adjusted EBITDA rose 64% to $6.7 million (C$9.6 million), marking the strongest quarter in three years.
International sales to Australia, Germany, the UK, and newly added New Zealand markets supported this growth. The segment maintained a top-three market share position and refinanced its credit facility on improved terms.
Expansion in Europe and U.S. Cannabis Markets
Netherlands and U.S. Segments Show Strategic Progress
Village Farms’ Leli Holland subsidiary began recreational cannabis sales in the Netherlands in February 2025 and expects to quintuple capacity by Q1 2026 with the completion of its Phase II facility in Groningen.
In the U.S., the Balanced Health Botanicals division posted $3.9 million in sales and returned to profitability with $58,000 in net income, driven by improved gross margins and internalized manufacturing. The company is awaiting approval for a Texas medical marijuana license, which could further expand its U.S. footprint.
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