Village Farms(US:VFF)2025-05-12 21:25Financial Performance - Village Farms reported Q1 2025 consolidated sales of $77.1 million, a slight decrease from $78.1 million in Q1 2024[10]. - The company experienced a consolidated net loss of $6.7 million, or $0.06 per share, compared to a net loss of $2.9 million, or $0.03 per share in the prior year[10]. - Adjusted EBITDA for Q1 2025 was $0.1 million, down from $3.6 million in Q1 2024, indicating a significant decline in operational profitability[10]. - Sales for the three months ended March 31, 2025, were $77,074, a decrease of 1.3% from $78,077 in the same period of 2024[21]. - Gross profit for Q1 2025 was $11,340, down 27.0% from $15,513 in Q1 2024[21]. - Net loss attributable to Village Farms International Inc. shareholders increased to $6,703 in Q1 2025 from $2,852 in Q1 2024, representing a 134.5% increase[21]. - Adjusted EBITDA for Q1 2025 was $81, a significant decline from $3,591 in Q1 2024[21]. - Basic loss per share for Q1 2025 was $(0.06), compared to $(0.03) in Q1 2024[21]. - Total current assets decreased to $104,874,000 as of March 31, 2025, from $116,019,000 at December 31, 2024, a decline of 9.6%[45]. - Total liabilities decreased to $119,151,000 as of March 31, 2025, from $125,348,000 at December 31, 2024, a reduction of 4.5%[45]. - Cash and cash equivalents at the end of Q1 2025 were $15,125,000, down 38.5% from $24,631,000 at the end of Q4 2024[48]. - Net cash used in operating activities for Q1 2025 was $6,376,000, compared to a minimal usage of $50,000 in Q1 2024[48]. - Cash flows used in investing activities totaled $2,839,000 in Q1 2025, an increase from $1,876,000 in Q1 2024[48]. - Comprehensive loss attributable to Village Farms International, Inc. shareholders was $5,811,000 in Q1 2025, compared to $6,815,000 in Q1 2024, indicating a slight improvement[46]. Cannabis Operations - Canadian Cannabis net income increased 258% year-over-year to $3.0 million, with adjusted EBITDA rising 64% to $6.7 million[5][18]. - International medical export cannabis sales surged 285% year-over-year, contributing to gross margin expansion in Canadian Cannabis to 36%[5][10]. - Village Farms commenced cannabis sales in the Netherlands, marking its entry into the European recreational market, with sales beginning in late February 2025[5][10]. - The company plans to complete its Phase II facility in Groningen by Q1 2026, which is expected to quintuple annual production capacity[4][10]. - Retail branded sales in Canadian Cannabis decreased by 20%, while non-branded sales increased by 3% in Canadian dollars[10][19]. - The company maintained a top three market share position in Canada despite a reduction in lower-margin branded sales[5][16]. - Sales breakdown for Q1 2025 included $37,421 from VF Fresh, $34,837 from Canadian Cannabis, and $3,904 from U.S. Cannabis[23]. - The company is expanding its international presence by exporting medical cannabis to markets including Germany, the UK, Israel, Australia, and New Zealand[34]. - Village Farms plans to enter the U.S. THC market leveraging its 5.5 million square feet of greenhouse capacity in West Texas[35]. - Village Farms is one of the leading CBD and hemp-derived brands in the U.S. through its subsidiary Balanced Health Botanicals[35]. Strategic Initiatives - The company expects to receive $40 million in cash proceeds and a 37.9% equity ownership interest in Vanguard Food LP from the privatization of certain Fresh Produce segment assets[3][4]. - The partnership with Terreva Renewables is expected to reduce greenhouse gas emissions by 475,000 metric tons of CO2 annually[36]. - The company is focusing on high-growth cannabinoid opportunities internationally, with strategic investments in international assets[34]. - The proposed spin-out of produce assets into a new joint venture is part of the company's future growth strategy[38]. - Village Farms has 2.6 million square feet of additional greenhouse capacity available in Canada for future expansion[33]. Management Outlook - Management cautioned that the results for the three months ended March 31, 2025, may not be indicative of future performance[22]. - For the three months ended March 31, 2024, the total net loss was $2,852,000, with a significant loss from U.S. Cannabis operations amounting to $711,000[27]. - Adjusted EBITDA for the total company was $3,591,000, with the Canadian Cannabis segment contributing $4,073,000[27].