In This Article:
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Total Fourth-Quarter Revenue: $83 million, an 11% increase year over year.
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Full-Year Revenue: $336 million, an 18% increase year over year.
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Canadian Cannabis Net Sales Growth: 31% for 2024.
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Inventory Write-Down: $10.5 million non-cash write-down in Canadian cannabis.
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Adjusted EBITDA (Excluding Write-Down): $7 million for Q4, highest in four years.
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Net Loss: $8.6 million or $0.08 per share, including the inventory write-down.
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Fresh Produce Q4 Sales: $43.3 million, a 17% increase year over year.
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International Cannabis Sales: CAD8.4 million for the year, with strong growth in early 2025.
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Cash Flow from Operations: $10.5 million for the full year, with $400,000 in Q4.
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Cash Position: $24.6 million at the end of Q4.
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Net Debt Level: $15.9 million.
Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Village Farms International Inc (NASDAQ:VFF) reported a strong fourth quarter with total revenues increasing by 11% year over year to $83 million.
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The Canadian cannabis segment saw a 31% growth in net sales for 2024, driven entirely by organic growth without acquisitions.
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The company achieved significant market share gains in the Canadian cannabis market, holding the number three position overall and expanding its number one position in the Dried Flower category.
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International cannabis sales increased significantly, with exports to international medical markets up 113% year over year, and the company expects to triple its international medicinal export sales in 2025.
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The Fresh Produce business showed improvement with a 17% increase in sales year over year, driven by higher volumes and operational efficiencies, resulting in positive adjusted EBITDA of $4.1 million.
Negative Points
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Village Farms International Inc (NASDAQ:VFF) took a $10.5 million non-cash write-down of non-flower manufactured inventory in Canadian cannabis due to quality issues, impacting the fourth-quarter performance.
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The company reported a net loss of $8.6 million for the fourth quarter, which includes the inventory write-down.
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The Canadian cannabis segment faced challenges with excise taxes, which are one of the largest single expenses, impacting profitability.
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The US cannabis business continues to face regulatory headwinds, affecting sales, although there was a sequential improvement in revenues.
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Potential tariffs on Canadian and Mexican imports could impact the Fresh Produce business, although the company plans to mitigate this by relocating resources to its Texas operations.