Village Farms Reports Q4 and FY 2023 Financial Results
The TDR Three Key Takeaways for Village Farms Earnings:
- Village Farms had consolidated net sales increase, achieving record figures in Q4.
- The company had improvements in adjusted EBITDA, reaching $7.6 million for the year.
- Positive cash flow from operations, highlighting the success of strategic initiatives and core business performance.
Village Farms International, Inc. (NASDAQ: VFF), headquartered in Vancouver, British Columbia, reported its financial results for the fourth quarter and the full fiscal year ended December 31, 2023. The company, diversified in the cannabis market and fresh produce, achieved growth overall.
In Q4, Village Farms reported a 7% increase in consolidated sales year-over-year, reaching $74.2 million, and was focused on strategic divestitures for future profitability improvements. The company also saw substantial improvements in gross margin, which reached 23%, attributing the gains to its Canadian cannabis business. This cannabis segment delivered a 14% increase in year-over-year sales and management shared that it has reclaimed its position as the second-largest national brand in Canada.
For the full year, Village Farms narrowed its consolidated net loss per share to ($0.29) and reported a rise in adjusted EBITDA to $7.6 million. This performance was buoyed by a 20X increase in net income and a 10X increase in adjusted EBITDA from its Canadian cannabis operations. Moreover, all core businesses of the company reported positive adjusted EBITDA, as well.
Michael DeGiglio, President and CEO, highlighted the company’s accomplishments, particularly in the Canadian cannabis sector, which saw record sales and improved supply conditions. DeGiglio also pointed to a favorable operating environment emerging in Canada and the potential benefits of regulatory changes on the industry’s profit potential. Internationally, Village Farms is expanding its footprint, with significant developments in the Netherlands and the UK, and eyeing additional markets for its high-quality cannabis products.
The company’s U.S. cannabis business and fresh produce segment both contributed to the year’s positive financial results, with the former achieving positive adjusted EBITDA and cash flow, and the latter reaching its goal of positive adjusted EBITDA for the year. This performance underscores Village Farms’ diversified strength and its ability to generate stable and sustainable profitability across its business portfolio.
Village Farms International’s financial results for Q4 and the full year of 2023 reflect a year of growth highlights that were driven by its Cannabis business and saw some improvements in its core business as well. Want to keep up to date with all of TDR’s research, subscribe to our daily Baked In newsletter.
