Village Farms International Reports Q4 and Full Year 2024 Results and Comments on Profitable Growth Initiatives in 2025

Core Insights - Village Farms International, Inc. reported its financial results for Q4 and the full year 2024, highlighting a focus on profitable growth initiatives for 2025 [2][4][6]. Financial Performance - Full year consolidated sales increased by 18% year-over-year to $336.2 million, with Canadian Cannabis sales growing by 31$82.6 million, while international sales surged by 113% [6][18]. - The company faced a $10.5 million non-cash impairment charge in Q4 related to non-flower inventory, which affected Adjusted EBITDA, bringing it to a loss of$3.5 million [3][5][6]. Canadian Cannabis Segment - Canadian Cannabis gross margin for Q4 was reported at 33%, with an Adjusted EBITDA margin of 12% when excluding the impairment charge [4][7]. - The company maintained the 1 market share in dried flower and ranked 2 in pre-rolls for 2024 [6][8]. International Expansion - The company has expanded its international sales, now shipping to five markets including Germany, Australia, the UK, and recently New Zealand, with plans to triple international medicinal export sales in 2025 [4][13]. - International sales in Q4 2024 increased significantly, reflecting strong demand in key markets [6][13]. Operational Developments - Village Farms is optimizing resources between its Pure Sunfarms and Rose subsidiaries to enhance operational efficiencies [4][8]. - The company has commenced a Phase II expansion at its Leli Holland subsidiary in the Netherlands, expected to quintuple annual production capacity by Q4 2025 [4][6][13]. Future Outlook - The company expressed confidence in its ability to execute a profitable growth strategy in 2025, supported by a strong balance sheet and healthy inventory position [4][6].