In This Article:
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Revenue: USD 77 million, a slight decrease of 1% from the prior year's first quarter.
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Net Loss: USD 6.7 million or USD 0.06 per share, compared to a loss of USD 2.9 million or USD 0.03 per share in the prior year.
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Gross Margin (Canadian Cannabis): Increased from 25% to 36% year-over-year.
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Adjusted EBITDA (Canadian Cannabis): CAD 9.6 million, up 75% from the previous year.
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Medical Export Sales Growth: Increased by 285% year-over-year.
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Net Sales (Canadian Cannabis): CAD 50 million, roughly in line with the previous year.
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International Sales (Canadian Cannabis): CAD 7.7 million, nearly matching the entire 2024 international sales.
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Net Income (Clean Energy): USD 300,000 from royalty payments.
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Cash Flow from Operations: Negative USD 6.4 million for the first quarter.
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Cash Position: USD 15 million at the end of Q1.
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Working Capital: USD 50 million.
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Net Debt: USD 19.3 million.
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Term Debt: USD 34 million at the end of Q1.
Release Date: May 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) announced a transformative transaction to privatize the majority of its Fresh Produce division into a new joint venture, Vanguard Foods LP, which is expected to unlock long-term value.
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The company will retain a 37.9% ownership interest in Vanguard and receive $40 million in cash proceeds, enhancing its financial position.
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Canadian cannabis operations reported a strong quarter with a 285% year-over-year increase in higher-margin medical export sales.
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The company achieved a significant expansion of its gross margin for Canadian cannabis from 25% to 36%, aligning with its targeted range.
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Village Farms International Inc (NASDAQ:VFF) reported strong increases in adjusted EBITDA and net income, with a 75% and 291% rise, respectively, reflecting improved profitability.
Negative Points
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The company's net loss increased to $6.7 million from $2.9 million in the prior year, primarily due to weaker performance in the VF fresh segment.
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Dust storms in Texas significantly impacted the company's fresh produce operations, resulting in a 31% increase in cost per pound at the Fort Davis facility.
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Consolidated EBITDA was essentially flat compared to the previous year, driven by challenges in the fresh produce segment.
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Lower retail branded sales in Canadian cannabis were expected as the company shifted focus away from lower-margin categories.
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The US cannabis business continued to face regulatory headwinds, impacting sales, although it returned to positive adjusted EBITDA.