In This Article:
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Fresh Produce Sales: Increased 20% to nearly $43 million.
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Fresh Produce Gross Margin: Improved 400 basis points year over year to 8%.
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Fresh Produce Adjusted EBITDA: Positive $2.3 million.
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Fresh Produce Net Income: $0.4 million.
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Canadian Cannabis Total Net Sales: Grew 29% year over year to roughly $50 million CAD.
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Canadian Cannabis Adjusted EBITDA: Positive $6.5 million CAD.
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Canadian Cannabis Cash Flow from Operations: $6.1 million CAD.
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International Medical Sales: Doubled year over year.
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Consolidated Total Sales: Grew 20% year over year to $83.4 million.
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Consolidated Net Loss: Narrowed to $800,000 or 1 per share.
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Consolidated Adjusted EBITDA: Positive $5.3 million, up 65% from last year.
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Canadian Cannabis Gross Margin: 26%, impacted by non-branded spec sales.
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US Cannabis Sales: $3.9 million with a gross margin of 63%.
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Cash and Working Capital: Ended Q3 with $28.7 million in cash and $65.4 million in working capital.
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Total Term Debt: $43 million.
Release Date: November 07, 2024
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 20% increase in fresh produce sales, reaching nearly $43 million, with a gross margin improvement of 400 basis points year over year.
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The Canadian cannabis segment saw a 29% year-over-year growth in total net sales, reaching approximately $50 million, with positive adjusted EBITDA of $6.5 million.
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International medical cannabis sales doubled year over year, with significant growth in Germany, Australia, and the UK.
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Village Farms International Inc (NASDAQ:VFF) maintained the number one market share in Ontario and achieved the top position in Quebec, Canada's two most populous provinces.
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The company began cultivation in its Netherlands facility, with first sales expected in the first quarter of next year, indicating a strong potential for international expansion.
Negative Points
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The Canadian cannabis industry faces significant overcapacity, leading to inventory accumulation and pricing pressure.
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Village Farms International Inc (NASDAQ:VFF) experienced out-of-stock issues for several popular SKUs, impacting sales by approximately $2.5 million in the third quarter.
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The company is exposed to challenges in the US cannabis market due to the proliferation of unregulated hemp-derived products.
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The Canadian cannabis segment's gross margin decreased to 26% from 35% last year due to increased non-branded spec sales.
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The egregious excise tax in Canada remains a significant financial burden, with the company paying over $100 million in excise tax this year alone.