Village Farms(US:VFF)2024-05-08 11:10Financial Performance - Total consolidated sales increased by 21% year-over-year to $78.1 million from $64.7 million[8] - Adjusted EBITDA improved six-fold to $3.6 million from $0.5 million, with a basic loss per share of ($0.03) compared to ($0.06) in the previous year[8][21] - Total sales for the three months ended March 31, 2024, were $78,077,000, a 20.7% increase from $64,656,000 in the same period in 2023[23] - Adjusted EBITDA for Q1 2024 was $3,591,000, compared to $519,000 in Q1 2023, reflecting a significant improvement in operational performance[26] - Net loss for Q1 2024 was $2,852,000, a decrease from a net loss of $6,636,000 in Q1 2023, indicating a narrowing of losses year-over-year[26] - The company reported a basic loss per share of $0.03 for Q1 2024, improved from a basic loss per share of $0.06 in Q1 2023[26] - Gross profit for Q1 2024 was $15,513,000, up from $12,300,000 in Q1 2023, reflecting a gross margin improvement[46] - Net loss attributable to Village Farms International, Inc. shareholders for Q1 2024 was $2,852,000, compared to a net loss of $6,636,000 in Q1 2023, indicating a reduction in losses[46] - The company reported a comprehensive loss attributable to Village Farms International, Inc. shareholders of $6,815,000 for Q1 2024, compared to $5,895,000 in Q1 2023[46] Sales Growth - Canadian cannabis retail net sales grew 28% year-over-year, reaching $37.4 million (C$50.5 million) with positive adjusted EBITDA and free cash flow[3] - Cannabis segment sales in Canada were $37,446,000 for Q1 2024, compared to $25,112,000 in Q1 2023, representing a 49.0% increase[23] - VF Fresh segment sales reached $36,094,000 in Q1 2024, up from $34,567,000 in Q1 2023, showing growth in the fresh produce market[23] - Non-branded (wholesale) cannabis sales surged by 181% year-over-year, while international (export) sales decreased by 13%[8] Operational Developments - The company is on track to start production in its first facility in the Netherlands in Q4 2024, targeting the European recreational cannabis market[3][13] - The Delta, British Columbia Renewable Natural Gas Project began operations in April 2024, contributing to incremental profitability[15] - The company launched Hi-Def Pre-Rolls with THC content between 36-44%, exceeding initial demand expectations[13] - The company plans to complete the internalization of gummy production by Q2 2024, supporting supply consistency and gross profit[13] - The company continues to focus on expanding its cannabis operations, particularly in the U.S. high-THC market, leveraging its greenhouse capabilities[33] - Village Farms holds a 70% interest in Rose LifeScience, enhancing its position in the cannabis commercialization sector in Québec[32] - The company is targeting international cannabis and CBD opportunities, with a focus on the Asia-Pacific region and Europe for medium- and long-term growth[34] Financial Position - Cash and cash equivalents at the end of Q1 2024 were $26,685,000, down from $30,291,000 at the end of 2023[43] - Total assets decreased to $458,439,000 as of March 31, 2024, from $466,989,000 at the end of 2023[43] - Total liabilities decreased to $146,023,000 as of March 31, 2024, from $148,048,000 at the end of 2023[44] - The company incurred $1,876,000 in capital expenditures during Q1 2024, compared to $1,076,000 in Q1 2023[48] - The weighted average number of common shares used in the computation of net loss per share was 110,249,000 for Q1 2024, compared to 104,097,000 for Q1 2023[46] - The company experienced a foreign currency translation adjustment loss of $4,251,000 in Q1 2024, compared to a gain of $862,000 in Q1 2023[46] Company Recognition - Village Farms ranked as one of the fastest growing companies in the Americas, improving its overall ranking by 72 positions from the previous year[18] Future Outlook - Management will host a conference call on May 8, 2024, to discuss the financial results and future strategies, inviting analysts to participate[28]