Company Overview - Village Farms International, Inc. is a vertically integrated supplier focused on high-value, high-growth plant-based Consumer Packaged Goods, leveraging decades of experience in Controlled Environment Agriculture [4] - The company is a leading fresh produce supplier in the US and Canada and is expanding into high-growth opportunities in the cannabis and CBD markets [4] Cannabis Operations - In Canada, the company's subsidiary Pure Sunfarms is one of the largest cannabis operations globally and a top-selling brand [5] - Village Farms owns 80% of Rose LifeScience, a leading cannabis products commercialization expert in Québec [5] - The company exports medical cannabis from its EU GMP certified facility in Canada to various international markets, including Germany, the UK, Israel, and Australia [6] US Market Strategy - Village Farms plans to enter the US high-THC cannabis market, leveraging its extensive greenhouse operations in West Texas and expertise from Pure Sunfarms [7] Clean Energy Initiatives - Village Farms Clean Energy, in partnership with Terreva Renewables, generates clean energy from landfill gas, significantly reducing greenhouse gas emissions in Vancouver [8]

Core Viewpoint - Village Farms International, Inc. is set to discuss its first quarter 2025 financial results in a conference call scheduled for May 6, 2025, at 8:30 a.m. ET, following a news release at 7:00 a.m. ET on the same day [1][3]. Company Overview - Village Farms is a large-scale, Controlled Environment Agriculture-based supplier focused on high-value, high-growth plant-based Consumer Packaged Goods, with a strong foundation as a leading fresh produce supplier in the US and Canada [5]. - The company is capitalizing on growth opportunities in the cannabis and CBD sectors across North America, the Netherlands, and select international markets [5]. Cannabis Operations - In Canada, the company's subsidiary, Pure Sunfarms, is one of the largest cannabis operations globally and a leading brand in the market [6]. - Village Farms holds an 80% stake in Rose LifeScience, a prominent cannabis commercialization expert in Québec [6]. - The company is expanding its international cannabis and CBD presence, exporting medical cannabis to markets such as Germany, the UK, Israel, and Australia [7]. US Market Strategy - Village Farms plans to enter the US high-THC cannabis market, leveraging its extensive greenhouse operations in West Texas and the expertise gained from its Canadian operations [8]. Clean Energy Initiatives - Village Farms Clean Energy, in partnership with Terreva Renewables, generates clean energy from landfill gas, significantly reducing greenhouse gas emissions in Vancouver [9].

VANCOUVER, British Columbia, April 21, 2025 (GLOBE NEWSWIRE) -- Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF) today announced that on April 21, 2025, it received notification from The Nasdaq Stock Market LLC (“Nasdaq”) that Nasdaq approved the Company’s request for a 180-calendar day extension (the “Extension”) to regain compliance with the minimum closing bid price of US$1.00 per share listing requirement (NASDAQ Listing Rule 5550(a)(2)). The Extension follows the expir ...

In Canada, the Company's wholly-owned Canadian subsidiary, Pure Sunfarms, is one of the single largest cannabis operations in the world, the lowest-cost greenhouse producer and one of Canada's best-selling brands. The Company also owns 80% of Québec-based, Rose LifeScience, a leading third-party cannabis products commercialization expert in the Province of Québec. – Former consumer goods distribution, food, and retail service industry executive will help guide the Company's global expansion initiatives – VA ...

Village Farms International (NASDAQ: VFF ) reported its Q4-2024 financial results last Thursday. The company reported increasing revenues and an adjusted EBITDA of $7 million. International cannabis sales are driving growth. The company's stock price is down 10.6% since I covered itWelcome to the home of The Cannabis Report: a monthly report on the cannabis industry. I am an analyst and consultant in the cannabis industry. I have contributed to High Times Magazine. I currently have a book out, Cannabis in t ...

Financial Data and Key Metrics Changes - Total fourth quarter revenues reached $83 million, an increase of 11% year-over-year, while full year revenues increased by 18% to $336 million [8] - Net loss improved to $8.6 million or $0.08 per share from $22.5 million last year, with the current loss including a $10.5 million write-down [30] - Consolidated adjusted EBITDA was negative $3.5 million, but would have been $7 million excluding the inventory write-down, marking the best results in four years [30][35] Business Line Data and Key Metrics Changes - Canadian cannabis net sales grew by 10% year-over-year, driven by non-branded and international sales, with international medicinal exports up 127% year-over-year [34] - Fresh produce sales increased by 17% year-over-year to $43.3 million, with adjusted EBITDA positive at $4.1 million compared to negative $600,000 last year [32][33] - U.S. cannabis business saw a sequential revenue increase of 17% to $4.6 million, with a gross margin of 70% and adjusted EBITDA returning to positive territory at $300,000 [37] Market Data and Key Metrics Changes - The Canadian cannabis market remains competitive, with the company holding the 3 market share position overall and being the second fastest growing licensed producer organically during 2024 [12] - International cannabis sales for the year increased to CAD 8.4 million, with strong growth momentum continuing into 2025 [18] - The New Zealand medical cannabis market is forecasted to grow at a compounded annual growth rate of 58% over the next five years [17] Company Strategy and Development Direction - The company is prioritizing profitable sales growth over low-margin volume in Canada, focusing on maintaining a leadership position before expanding into other markets [10] - Plans to move extraction and vape manufacturing in-house are underway, aiming to capture profitable market share with new product offerings [14] - The company is optimistic about the Dutch market, having completed its first harvest and commenced sales, with plans for a Phase 2 cultivation facility to quadruple production capabilities [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum and ability to execute on growth opportunities, despite the inventory impairment in Q4 [15][23] - The company is well-positioned to deliver a successful year of profitable growth in 2025 and beyond, with a focus on international expansion [43] - Management acknowledged the challenges posed by potential tariffs but remains confident in their ability to adapt and manage costs effectively [25][27] Other Important Information - The company paid nearly CAD 100 million in excise taxes in 2024, which is more than double their SG&A expenses, highlighting the significant impact of these taxes on profitability [36] - The company ended Q4 with cash of $24.6 million and a working capital of $53.8 million, maintaining a comfortable net debt level of $15.9 million [40][41] Q&A Session Summary Question: Impact of inventory impairment on revenue - Management clarified that the impairment did not impact revenue as the decision was made to not sell suboptimal products [49][51] Question: Future market share and product allocation - Management indicated that while Canada remains a foundation, they are focusing on high-quality products and will meet domestic demand while also addressing international opportunities [58] Question: Status of licensed producers in the Netherlands - Management confirmed that only seven out of ten licensed producers are operational, with a firm deadline for coffee shops to buy exclusively from licensed producers by April 7 [64][66] Question: Growth expectations for international sales - Management expects to triple international medicinal export sales in 2025, with a focus on existing medical markets, separate from the recreational market in the Netherlands [75] Question: Risk of oversupply in the Canadian market - Management does not foresee a return to oversupply levels seen in previous years, citing limited biomass in the marketplace and steady demand for high-quality products [78][80]

Company Performance - Village Farms reported a quarterly loss of $0.08 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.02, marking an earnings surprise of -300% [1] - The company posted revenues of $82.55 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 1.07%, and showing an increase from $74.23 million year-over-year [2] - Over the last four quarters, Village Farms has surpassed consensus revenue estimates four times, but has only exceeded EPS estimates once [2] Stock Movement and Outlook - Village Farms shares have declined approximately 10.6% since the beginning of the year, compared to a decline of -4.8% for the S&P 500 [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates indicating breakeven on $79.29 million in revenues for the upcoming quarter and $0.01 on $353.24 million in revenues for the current fiscal year [4][7] Industry Context - The Consumer Products - Staples industry, to which Village Farms belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Village Farms' stock performance [5]

Company Performance - Village Farms International, Inc. remains a top three cannabis producer in Canada and was the second fastest growing producer organically year-over-year[393]. - Sales for the year ended December 31, 2024 increased by $50,578, or approximately 18%, to $336,181 compared to $285,603 for 2023[400]. - Sales for VF Fresh reached $169,183, while Cannabis Canada and U.S. Cannabis generated $148,856 and $17,390 respectively, totaling $336,181 for the year ended December 31, 2024[429]. - Canadian cannabis net sales for the year ended December 31, 2024 increased by $34,826, or 31%, to $148,856 from $114,030 in 2023[432]. - U.S. Cannabis net sales for the year ended December 31, 2024, decreased by 14% to $17,390 from $20,330 in 2023, attributed to new restrictions on CBD sales[457]. - Produce sales for the year ended December 31, 2024, increased by 12% to $169,184 compared to $151,243 in 2023, driven by a 13% increase in pounds sold[471]. Financial Results - The net loss for the year ended December 31, 2024 was $3,181, compared to net income of $2,936 in 2023, primarily due to an inventory write-down of $10,436 (C$15,000)[443]. - Adjusted EBITDA for 2024 decreased by $5,797 to $1,788 from $7,585 in 2023[413]. - The net loss attributable to Village Farms International, Inc. shareholders for 2024 was $35,850, an increase of $1,052, or 3%, compared to $34,798 in 2023[412]. - Loss before taxes and loss from equity method investments for 2024 was $37,305, an increase of $9,937, or 36%, compared to $27,368 in 2023[409]. - Adjusted EBITDA for the year ended December 31, 2024 was $7,282, a decrease of $7,482, or 51%, compared to $14,764 in 2023, largely due to the inventory impairment charge[445]. Cost and Expenses - Cost of sales for 2024 increased by $52,604, or 22%, to $288,781 from $236,177 in 2023[401]. - Selling, general and administrative expenses for 2024 increased by $5,547 to $71,048, or 21% of sales, from $65,501, or 23% of sales, in 2023[403]. - Gross margin for 2024 decreased by $2,026, or 4%, to $47,400 from $49,426 in 2023[402]. - The company incurred excise tax of $71,953 (C$98,442) for the year ended December 31, 2024, an increase of $13,938 (C$20,127), or 24%, compared to $58,015 (C$78,315) in 2023[433]. Impairments and Write-downs - Goodwill and intangible asset impairments for 2024 were $11,939 compared to $14,020 in 2023[408]. - Inventory write-downs for the year ended December 31, 2024, were $11,038 due to older manufactured products requiring higher rework costs than their resale value[537]. - The company reported impairments of $10,039,000 for goodwill and $1,900,000 for intangible assets in 2024, compared to $11,300,000 and $2,720,000 respectively in 2023[514]. Market and Operational Challenges - The company continues to face challenges from unregulated hemp-derived products in the U.S. market, which may impact market share for the CBD industry[393]. - The company is exploring options to sell its Produce assets and has an ongoing sale process for its Monahans greenhouse facility[393]. - The company has material long-term debt and lines of credit that may be affected by rising interest rates, impacting the cost of capital[506]. Strategic Initiatives - The acquisition of Leli Holland was completed in Q4 2024, making it a wholly owned subsidiary, with sales expected to commence in February 2025[386]. - The company plans to continue focusing on market expansion and new product development to drive future growth[429]. - The company plans to consolidate its financial results with a 100% interest in Leli beginning on September 23, 2024[514]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2024 were $24,631, down from $35,291 as of December 31, 2023[485]. - Operating activities generated cash flow of $10,348 for the year ended December 31, 2024, compared to $5,315 for the year ended December 31, 2023[502]. - Cash flows used in investing activities for 2024 were $10,241 million, up from $6,231 million in 2023 and down from $20,889 million in 2022, primarily due to $6,061 million in capital expenditures for Leli and $4,022 million for cannabis operations[503].

Sales Performance - Full year consolidated sales increased by 18% year-over-year to $336.2 million[5] - Fourth quarter consolidated sales rose by 11% year-over-year to $82.6 million[5] - Canadian Cannabis sales grew by 31% year-over-year, with retail branded sales increasing by 23%[5] - Retail branded sales for Q4 2024 reached CAD $55.8 million, a decrease of 1% compared to CAD $56.1 million in Q4 2023[19] - Non-branded sales increased by 20% to CAD $9.5 million in Q4 2024, up from CAD $7.9 million in Q4 2023[19] - International sales surged by 127% to CAD $2.5 million in Q4 2024, compared to CAD $1.1 million in Q4 2023[19] - Net sales for the year ended December 31, 2024, were CAD $204.0 million, a 32% increase from CAD $154.0 million in 2023[19] - Village Farms reported Q4 2024 sales of $82.554 million, an increase of 11.0% from $74.225 million in Q4 2023[48] Financial Performance - Full year cash flow from operations amounted to $10.3 million, reflecting a strong operational performance[5] - The company reported a net loss attributable to shareholders of CAD $8.629 million for Q4 2024, an improvement from a net loss of CAD $25.483 million in Q4 2023[21] - Adjusted EBITDA for the year ended December 31, 2024, was CAD $1.788 million, down from CAD $7.585 million in 2023[21] - The company experienced a gross margin of CAD $6.931 million in Q4 2024, down from CAD $11.006 million in Q4 2023[21] - The net loss for 2024 was $35.850 million, which is a decrease from a net loss of $34.798 million in 2023[24] - Adjusted EBITDA for 2024 was $1.788 million, a significant improvement from a negative $7.585 million in 2023[24] - Basic loss per share for 2024 was $0.32, compared to a loss of $0.33 per share in 2023[24] - The company reported an operating loss of $37.305 million for 2024, compared to a loss of $27.368 million in 2023[24] Cost and Expenses - Selling, general and administrative expenses increased to CAD $18.455 million in Q4 2024, compared to CAD $15.521 million in Q4 2023[21] - The cost of sales for 2024 was $288.781 million, compared to $236.177 million in 2023, indicating a 22% increase[24] - The company reported an increase in amortization and depreciation expenses to $18,838,000 for the year ended December 31, 2024, compared to $15,926,000 for the previous year[28] - Depreciation and amortization expenses increased to $18,838 million in 2024 from $15,926 million in 2023, reflecting an increase of 18.1%[50] Asset and Liability Management - Total current assets decreased to $116.019 million as of December 31, 2024, from $151.768 million a year earlier, a decline of 23.5%[46] - The company’s total assets decreased to $389.306 million as of December 31, 2024, down from $463.989 million in 2023, a reduction of 16.1%[46] - The company’s total liabilities decreased to $125.348 million as of December 31, 2024, from $148.048 million in 2023, a decrease of 15.3%[46] International Expansion - Fourth quarter international sales surged by 113% year-over-year, with expectations to triple international sales in 2025[5] - The company is expanding its international presence with additional export contracts to new countries and customers in the Asia-Pacific and European regions, targeting significant medium- and long-term potential in the cannabis market[36] Operational Efficiency - The company aims to optimize resources between its Pure Sunfarms and Rose subsidiaries to enhance operational efficiencies in 2025[6] - The company is expanding its production capacity in the Netherlands, with a Phase II facility expected to quintuple annual production capacity by Q4 2025[5] Market Position and Strategy - Village Farms' subsidiary, Pure Sunfarms, is recognized as one of the largest cannabis operations globally and a leading brand in Canada, highlighting its competitive position in the market[34] - The company is focusing on expanding its cannabis segment in both Canada and the U.S. markets[24] - The company plans to enter the US high-THC cannabis market leveraging its extensive greenhouse operations of over 5.5 million square feet in West Texas[37] Environmental Impact - Village Farms Clean Energy partnership is expected to reduce Vancouver's greenhouse gas emissions by 475,000 metric tons of CO2 annually[38]

Core Insights - Village Farms International, Inc. reported its financial results for the fourth quarter and full year 2024, highlighting a focus on profitable growth initiatives for 2025 [1][3]. Financial Performance - Full year consolidated sales increased by 18% year-over-year to $336.2 million, with Canadian Cannabis sales growing by 31% and retail branded sales up by 23% [4]. - Fourth quarter consolidated sales grew by 11% year-over-year to $82.6 million, while international sales surged by 113% year-over-year [4][7]. - The company faced a $10.5 million non-cash impairment charge related to non-flower inventory, which impacted fourth quarter and full year Adjusted EBITDA, which would have been $7.0 million and $12.2 million, respectively, without this charge [2][5]. Canadian Cannabis Segment - Canadian Cannabis gross margin and Adjusted EBITDA margin for Q4 were reported at 33% and 12%, respectively, excluding the inventory impairment [3]. - The company maintained the 1 market share in dried flower, 2 in pre-rolls, and 3 overall in the Canadian market for 2024 [4][6]. - Retail branded sales in Canadian Cannabis decreased by 1%, while international medicinal sales increased by 127% [7][18]. International Expansion - The company has expanded its international sales, driven by demand in Germany, Australia, and the UK, and aims to triple international medicinal export sales in 2025 [3][4]. - Village Farms has recently entered the New Zealand market and is optimistic about future customer and market opportunities [3][4]. Operational Developments - The company is optimizing resources between its Pure Sunfarms and Rose subsidiaries to enhance operational efficiencies [3]. - A Phase II expansion project has commenced at the Leli Holland subsidiary in the Netherlands, expected to quintuple annual production capacity by Q4 2025 [4][3]. Cash Flow and Losses - Full year cash flow from operations was reported at $10.3 million, with a net loss improving by 66% to $8.6 million in Q4 [4][7]. - The company reported a consolidated net loss of $4.8 million for the year, compared to a profit of $4.0 million in the previous year [20][24].