Village Farms Shares Trading Higher On Q2 Gross Profit Growth Of 81.9% YoY

Village Farms International, Inc. VFF released its financial results for the second quarter ended June 30, 2023, revealing sales decreased 7% year-over-year to $77.2 million from $82.9 million;

Q2 2023 Financial Highlights

• Gross profit of $11.5 million, an increase of 81.9% compared to $6.3 million in Q2 2022.

• Gross margin of 14.9% compared to 7.6% in Q2 2022.

• Net loss improved to $1.4 million, or $0.01 per share, compared with a loss of $36.6 million, or $0.41 per share in Q2 2022.

• Adjusted EBITDA improved to $4.5 million from negative $10.3 million in Q2 2022.

• Cash, cash equivalents and restricted cash, at the end of the period were $31.7 million.

“The second quarter saw the continuation of strong growth in retail branded sales in our Canadian Cannabis business, steady performance in our U.S. Cannabis business, and marked improvement in our fresh produce business, all of which contributed to significantly improved financial results on both a year-over-year and sequential basis,” stated Michael DeGiglio, CEO, Village Farms.

“Our Canadian Cannabis business delivered 24% year-over-year growth in Canadian dollar retail branded sales – all of which was generated organically – once again significantly outpacing expansion of the overall market. We maintained our top-three market share position nationally for the second quarter of 2023. Importantly, the business delivered these strong competitive results while generating positive net income and its 19^th consecutive quarter of positive adjusted EBITDA, which was up 97% in Canadian dollars year-over-year.”

Price Action

Village Farms shares were trading 10.74% at $0.67 per share at the time of writing Wednesday morning.

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