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 the fourth quarter and full year 2024, highlighting a focus on profitable growth initiatives for 2025 [1][3]. Financial Performance - Full year consolidated sales increased by 18% year-over-year to $336.2 million, with Canadian Cannabis sales growing by 31% and retail branded sales up by 23% [4]. - Fourth quarter consolidated sales grew by 11% year-over-year to $82.6 million, while international sales surged by 113% year-over-year [4][7]. - The company faced a $10.5 million non-cash impairment charge related to non-flower inventory, which impacted fourth quarter and full year Adjusted EBITDA, which would have been $7.0 million and $12.2 million, respectively, without this charge [2][5]. Canadian Cannabis Segment - Canadian Cannabis gross margin and Adjusted EBITDA margin for Q4 were reported at 33% and 12%, respectively, excluding the inventory impairment [3]. - The company maintained the 1 market share in dried flower, 2 in pre-rolls, and 3 overall in the Canadian market for 2024 [4][6]. - Retail branded sales in Canadian Cannabis decreased by 1%, while international medicinal sales increased by 127% [7][18]. International Expansion - The company has expanded its international sales, driven by demand in Germany, Australia, and the UK, and aims to triple international medicinal export sales in 2025 [3][4]. - Village Farms has recently entered the New Zealand market and is optimistic about future customer and market opportunities [3][4]. Operational Developments - The company is optimizing resources between its Pure Sunfarms and Rose subsidiaries to enhance operational efficiencies [3]. - A Phase II expansion project has commenced at the Leli Holland subsidiary in the Netherlands, expected to quintuple annual production capacity by Q4 2025 [4][3]. Cash Flow and Losses - Full year cash flow from operations was reported at $10.3 million, with a net loss improving by 66% to $8.6 million in Q4 [4][7]. - The company reported a consolidated net loss of $4.8 million for the year, compared to a profit of $4.0 million in the previous year [20][24].