Village Farms(VFF) - 2024 Q4 - Annual Results

Sales Performance - Full year consolidated sales increased by 18% year-over-year to $336.2 million[5] - Fourth quarter consolidated sales rose by 11% year-over-year to $82.6 million[5] - Canadian Cannabis sales grew by 31% year-over-year, with retail branded sales increasing by 23%[5] - Retail branded sales for Q4 2024 reached CAD $55.8 million, a decrease of 1% compared to CAD $56.1 million in Q4 2023[19] - Non-branded sales increased by 20% to CAD $9.5 million in Q4 2024, up from CAD $7.9 million in Q4 2023[19] - International sales surged by 127% to CAD $2.5 million in Q4 2024, compared to CAD $1.1 million in Q4 2023[19] - Net sales for the year ended December 31, 2024, were CAD $204.0 million, a 32% increase from CAD $154.0 million in 2023[19] - Village Farms reported Q4 2024 sales of $82.554 million, an increase of 11.0% from $74.225 million in Q4 2023[48] Financial Performance - Full year cash flow from operations amounted to $10.3 million, reflecting a strong operational performance[5] - The company reported a net loss attributable to shareholders of CAD $8.629 million for Q4 2024, an improvement from a net loss of CAD $25.483 million in Q4 2023[21] - Adjusted EBITDA for the year ended December 31, 2024, was CAD $1.788 million, down from CAD $7.585 million in 2023[21] - The company experienced a gross margin of CAD $6.931 million in Q4 2024, down from CAD $11.006 million in Q4 2023[21] - The net loss for 2024 was $35.850 million, which is a decrease from a net loss of $34.798 million in 2023[24] - Adjusted EBITDA for 2024 was $1.788 million, a significant improvement from a negative $7.585 million in 2023[24] - Basic loss per share for 2024 was $0.32, compared to a loss of $0.33 per share in 2023[24] - The company reported an operating loss of $37.305 million for 2024, compared to a loss of $27.368 million in 2023[24] Cost and Expenses - Selling, general and administrative expenses increased to CAD $18.455 million in Q4 2024, compared to CAD $15.521 million in Q4 2023[21] - The cost of sales for 2024 was $288.781 million, compared to $236.177 million in 2023, indicating a 22% increase[24] - The company reported an increase in amortization and depreciation expenses to $18,838,000 for the year ended December 31, 2024, compared to $15,926,000 for the previous year[28] - Depreciation and amortization expenses increased to $18,838 million in 2024 from $15,926 million in 2023, reflecting an increase of 18.1%[50] Asset and Liability Management - Total current assets decreased to $116.019 million as of December 31, 2024, from $151.768 million a year earlier, a decline of 23.5%[46] - The company’s total assets decreased to $389.306 million as of December 31, 2024, down from $463.989 million in 2023, a reduction of 16.1%[46] - The company’s total liabilities decreased to $125.348 million as of December 31, 2024, from $148.048 million in 2023, a decrease of 15.3%[46] International Expansion - Fourth quarter international sales surged by 113% year-over-year, with expectations to triple international sales in 2025[5] - The company is expanding its international presence with additional export contracts to new countries and customers in the Asia-Pacific and European regions, targeting significant medium- and long-term potential in the cannabis market[36] Operational Efficiency - The company aims to optimize resources between its Pure Sunfarms and Rose subsidiaries to enhance operational efficiencies in 2025[6] - The company is expanding its production capacity in the Netherlands, with a Phase II facility expected to quintuple annual production capacity by Q4 2025[5] Market Position and Strategy - Village Farms' subsidiary, Pure Sunfarms, is recognized as one of the largest cannabis operations globally and a leading brand in Canada, highlighting its competitive position in the market[34] - The company is focusing on expanding its cannabis segment in both Canada and the U.S. markets[24] - The company plans to enter the US high-THC cannabis market leveraging its extensive greenhouse operations of over 5.5 million square feet in West Texas[37] Environmental Impact - Village Farms Clean Energy partnership is expected to reduce Vancouver's greenhouse gas emissions by 475,000 metric tons of CO2 annually[38]