Village Farms(US:VFF)2025-11-10 12:04Financial Performance - Consolidated net sales increased 21% year-over-year to $66.7 million, with international export sales rising 758%[4] - Consolidated net income from continuing operations was $10.8 million, or $0.09 per share, compared to a net loss of $0.8 million in the prior year[4] - Consolidated adjusted EBITDA reached $20.2 million, representing 30.3% of sales, both company records[4] - Total Net Sales for Q3 2025 reached CAD $64.1 million, a 29% increase from CAD $49.8 million in Q3 2024[21] - Gross Profit for Q3 2025 was CAD $35.8 million, representing a 173% increase compared to CAD $13.1 million in Q3 2024[21] - Net Income for Q3 2025 was CAD $16.0 million, a significant increase of 900% from CAD $1.6 million in Q3 2024[21] - Adjusted EBITDA for Q3 2025 was CAD $26.6 million, up 309% from CAD $6.5 million in Q3 2024[21] - Total sales for the three months ended September 30, 2025, were $66,741 million, a decrease from $54,938 million in the same period of 2024, representing a decline of approximately 21.5%[27] - The company reported a basic income per share of CAD $0.09 for Q3 2025, compared to a loss of CAD $0.01 in Q3 2024[24] - The company reported a net loss of $7,810 million, compared to a net income of $3,399 million in the previous period, reflecting a significant decline[29] Operational Highlights - Operating cash flow for the quarter was $24.4 million, bringing the year-to-date total to $46.7 million, with a cash position of approximately $88 million[4] - The company is expanding its production capacity by 40 metric tons, expected to support growth in Canadian and international markets[3] - The Netherlands facility has reached full operating capacity, with a second facility under construction to quintuple production capacity, expected to be operational in Q1 2026[3] - The company plans to enter additional international medical markets in the first half of 2026, leveraging its strong export capabilities[14] - The hiring of a new Chief Information and Technology Officer aims to enhance the company's global technology and information strategy[14] Cost Management - Selling, general and administrative expenses for Q3 2025 totaled $15,599 million, a decrease from $14,565 million in Q3 2024, reflecting a reduction of approximately 7.1%[27] - The cost of sales for Q3 2025 was $34,803 million, compared to $41,301 million in Q3 2024, reflecting a decrease of about 15.7%[27] - The provision for income taxes in Q3 2025 was $4,717 million, compared to a recovery of $94 million in Q3 2024[27] - Total selling, general and administrative expenses reached $45,871 million, highlighting increased operational costs[29] - Interest expense decreased to $2,162,000 from $2,594,000, indicating improved cost management in financing[43] Cash Flow and Investments - Cash Flow from Operations for Q3 2025 was CAD $26.8 million, a 339% increase from CAD $6.1 million in Q3 2024[21] - Cash flows provided by operating activities from continuing operations increased significantly to $46,710,000 compared to a net cash of $2,803,000 in the same period last year, marking a substantial improvement[43] - Net cash used in investing activities from continuing operations was $7,117,000, up from $5,607,000 in the previous year, indicating increased investment in growth[43] - The company repaid $6,612,000 in borrowings, which is an increase from $4,301,000 in the previous year, reflecting a focus on reducing debt[43] Future Outlook - The company plans to focus on market expansion and new product development to drive future growth[27] - The company anticipates continued growth in sales and profitability driven by its strategic initiatives in the cannabis and agricultural sectors[37]