Reports Q2 2023 Financial Results and Highlights Strong Growth In Cannabis and Fresh Produce Segments (2023/08/10)
Village Farms International, Inc. (NASDAQ: VFF), a leading agricultural producer, has released its financial results for the second quarter ending June 30, 2023. All figures are presented in U.S. dollars unless otherwise stated.
Management Commentary:
Michael DeGiglio, Chief Executive Officer of Village Farms, expressed satisfaction with the company’s performance, highlighting strong growth in the Canadian Cannabis sector, consistent performance in the U.S. Cannabis segment, and significant improvements in the Fresh Produce division. “Our Canadian Cannabis business delivered a 24% year-over-year growth in Retail Branded sales, outperforming the overall market expansion,” DeGiglio stated. He also emphasized the company’s strategic focus on consumer-driven innovation and its aggressive pursuit of international opportunities.
Q2 2023 Financial Highlights:
Consolidated:
- Sales decreased by 7% year-over-year, totaling $77.2 million.
- Operating loss before tax improved to ($42 thousand) from a previous loss of ($43.8 million).
- Net loss improved to ($1.4 million) or ($0.01) per share from ($36.6 million) or ($0.41) per share.
- Adjusted EBITDA improved to $4.5 million from a negative ($10.3 million).
Canadian Cannabis (Pure Sunfarms and Rose LifeScience):
- Net sales decreased by 6% to $28.1 million.
- Retail branded sales saw a 24% increase.
- International sales surged by 217%.
- Gross margin stood at 38%.
- Net income was $1.2 million.
- Adjusted EBITDA increased by 78% to $4.8 million.
U.S. Cannabis (Balanced Health Botanicals):
- Net sales amounted to $5.3 million.
- Gross margin was 67%.
- Net income was $0.2 million.
- Adjusted EBITDA was $0.4 million.
Village Farms Fresh (Produce):
- Sales decreased by 7% to $43.8 million.
- Net loss improved to ($0.7 million) from ($9.4 million).
- Adjusted EBITDA improved to $1.3 million from a negative ($10.3 million).
Strategic Growth and Operational Highlights:
In the Canadian Cannabis sector, Village Farms maintained its top-three producer market share ranking nationally for Q2 2023 and became the leading producer in Quebec. The company also introduced Super Toast, a new brand focused on convenience and ready-to-go products.
DeGiglio concluded by emphasizing Village Farms’ commitment to leveraging its leading position in the cannabis industry and its ongoing efforts to return the Fresh Produce business to profitability.
Village Farms International Reports Strong Q1 2023 (2023/05/11)
Village Farms International, Inc., a Vancouver-based company, has released its financial results for the first quarter of 2023. The report highlighted the continued strong growth in the company’s Canadian Cannabis business, significant improvement in its Fresh Produce business, and the launch of its cannabis products in Germany.
According to Village Farms’ CEO, Michael DeGiglio, the first quarter of 2023 was a solid start for the company, with the Canadian Cannabis business delivering a 40% year-over-year growth in retail branded sales. This growth outpaced the overall market growth and maintained the company’s number two market share position nationally. The company was also one of only three of the top 10 producers to expand market share in the same period last year.
Furthermore, the company achieved its 18th consecutive quarter of positive adjusted EBITDA, with a year-over-year increase of 95%. The CEO credited the company’s ongoing focus on production efficiency and cost management for this success.
However, DeGiglio expressed disappointment in the excessive, flat per-gram excise tax imposed by the Canadian government on legal cannabis businesses. This taxation prevents such businesses from achieving long-term profitability while the illegal market continues to thrive. Village Farms International implored the federal government to address fair and equitable taxation for the cannabis industry to support safe, regulated products in the hands of adults and a healthy and competitive legal market that supports profitable investment in jobs and local communities.
Village Farms also reported that it added Germany as its third export market for its Cannabis business, with higher-margin, rationally taxed export sales growing more than nine-fold year-over-year. Village Farms International is leveraging its premier, unmatched low-cost, high-quality cannabis production, track record of success, and reputation to aggressively pursue export and other international opportunities, particularly in the face of the challenging Canadian market economics.
Regarding Village Farms Fresh Produce business, the company delivered its third consecutive quarter of significant improvement, achieving a $6.6 million turnaround in adjusted EBITDA. The much-improved first quarter, helped by some macro-environment stabilization, continues to support the company’s confidence in substantially improved financial performance from Fresh Produce this year.
Village Farms International’s financial results for the first quarter of 2023 demonstrated the company’s continued strong growth in its Cannabis business, significant improvement in its Fresh Produce business, and expansion into international markets. The company’s success is attributed to its ongoing focus on production efficiency and cost management, premier, unmatched low-cost, high-quality cannabis production, and its multi-part plan to return its Fresh Produce business to profitability. Despite the challenges posed by excessive taxation and challenging Canadian market economics, Village Farms International remains committed to pursuing export and other international opportunities.
Image provided by Village Farms
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