Village Farms International, Inc. (VFF), the British Columbia-based cannabis company, reported strong financial results for the third quarter ended September 30, 2024. Revenue surged to $83.37 million, a significant jump from $69.51 million in the same period last year. This impressive growth was fueled by a combination of factors, including a strong performance in the company’s fresh produce business, continued expansion in the Canadian cannabis market, and a doubling of international medicinal cannabis sales.
“The strong performance in our fresh produce business, continued growth in Canadian cannabis, and a doubling of international medicinal cannabis sales drove 20% year-over-year growth in consolidated sales, with both positive Adjusted EBITDA and cash flow from operations during the third quarter,” stated Michael DeGiglio, president, and CEO of Village Farms.
DeGiglio highlighted the continued strong growth of Village Farms’ Canadian cannabis business, emphasizing the company’s leading market share and positive EBITDA and operating cash flow. Notably, Village Farms achieved the fastest growth in market share among Canadian producers over the past year and, for the first time, secured the top producer position in Quebec, making it the leading producer in Canada’s two most populous provinces.
Beyond Canada, Village Farms continues to expand its international reach, increasing sales to its German, Australian, and UK partners. The company’s Dutch operations hold significant potential for profitability and cash flow generation, driven by more favorable pricing and tax structures compared to Canada.
Q3 Financial Highlights
* Gross profit reached $15.71 million, compared to $14.62 million in the same quarter last year.
* Net loss amounted to $800,000, or $0.01 per share, a significant improvement from the $1.3 million loss, or $0.01 per share, recorded in the third quarter of 2023.
* Adjusted EBITDA was $5.3 million, a substantial increase from $3.25 million in the same period last year.
* Consolidated cash flow from operations was $4.3 million, compared to $12.1 million in the corresponding quarter of 2023.
Village Farms’ strong Q3 performance highlights the company’s strategic focus on diversified revenue streams and its commitment to expanding its presence in both domestic and international cannabis markets. The company’s robust financial results and its growing market share position it favorably for future growth and profitability.
