Village Farms' Record Q4 Sales Propel It To #2 In Canada's Cannabis Market

Village Farms International Inc. VFF, a Canadian cannabis producer, reported Wednesday its financial results for the fourth quarter and the entirety of 2023. The company showcased a remarcable year with record Q4 sales, marking a significant year-over-year increase.

Q4 2023 Financial Highlights

• Revenue increased 7% year-over-year to $74.2 million from $69.5 million
• Net loss was $22.5 million, decreasing from the $49.3 million of the same period last year
• Adjusted EBITDA loss was $0.66 million, improving from $11.8 million loss in Q4 2022
• Canadian Cannabis delivered 14% year-over-year sales increase, positive adjusted EBITDA and cash flow

Full 2023 Financial Highlights

• Revenue was $285.6 million, a slight decrease compared to the $293.6 from previous year
• Net loss was $31.8 million, a notable improvemement from the $101.1 million of FY 2022
• Adjusted EBITDA was $7.6 million, a notable increase from the $34.7 million loss from 2022
• Cash flow from operations improves significantly to $5.3 million

In Q4, the Canadian cannabis segment saw a 14% sales boost, also marked by positive adjusted EBITDA across all key segments, including U.S. cannabis and fresh produce.

For 2023, the company narrowed its net loss per share to ($0.29) and significantly improved its adjusted EBITDA. Canadian Cannabis operations stood out with a substantial increase in net income and adjusted EBITDA, contributing to the overall positive financial trajectory.

Also, Village Farms embarks on European expansion, setting the stage for international cannabis market leadership with its first production facility in the Netherlands.

CEO's Commentary

Village Farms International’s president and CEO, Michael DeGiglio, expressed optimism about the company’s trajectory, highlighting the Canadian Cannabis business’s sustained leadership through record sales and positive financial measures in the fourth quarter.

DeGiglio pointed to the strategic advantage gained from improved supply conditions and a more favorable operating environment, noting, “We reclaimed the number two national market share rank across all categories and are steadily closing the gap on the top position.” His commentary underlined the significance of operational advancements, market share gains, and the potential uplift from regulatory improvements within the cannabis sector.

VFF Price Action
VFF's shares were trading 3.72% lower at $0.713 per share at the time of this writing around 3:30 PM ET Wednesday.

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