Village Farms Defies Odds With Revenue Beat In Q2, Despite 7% Sales Drop

Village Farms International VFF reported a second-quarter FY23 sales decline of 7% year-on-year to $77.21 million, beating the analyst consensus estimate of $70.78 million.

The gross profit jumped 81.8% to $11.4 million, with the margin at 14.8%.

Adjusted EBITDA was $4.5 million versus $(10.3) million last year.

EPS of $(0.01) beat the consensus of $(0.04).

Village Farms held $31.7 million in cash and equivalents as of June 30, 2023.

"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," said CEO Michael DeGiglio.

Price Action: VFF shares were up 10.25% at $0.67 at the time of publication Wednesday.

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