Village Farms International Delivers Record Profitability and Performance from Continuing Operations in Q2/25

Core Insights - Village Farms International, Inc. reported strong financial results for Q2 2025, highlighting record profitability levels since entering the cannabis sector in 2017, with significant growth in adjusted EBITDA and net income [3][4][9]. Financial Performance - Consolidated net sales increased by 12% to $59.9 million from $53.6 million year-over-year [4][9]. - Consolidated net income was $26.5 million, or $0.24 per share, compared to a net loss of $23.5 million, or ($0.21) per share in the prior year [4][9]. - Adjusted EBITDA from continuing operations reached $17.1 million, representing 28.6% of sales, marking a significant increase from $2.9 million in the previous year [4][9]. - Canadian cannabis adjusted EBITDA surged by 146% year-over-year, reflecting successful margin improvement initiatives [4][9]. Strategic Developments - The company completed a transformative transaction on May 30, 2025, privatizing certain assets and operations of its Produce segment, receiving $40 million in cash and a 37.9% equity interest in Vanguard Food LP [2][4]. - The privatized operations are now classified as discontinued operations, with financial results adjusted for comparative periods [2][4]. - Village Farms maintains a top three market share position in Canada and the number one position in dried flower sales year-to-date through July 2025 [8]. Operational Highlights - The company has commenced sales in the Netherlands' adult-use market and is expanding its cannabis cultivation capacity in Canada and the Netherlands [3][4]. - International medical export sales increased by 690% year-over-year, driven by new customer relationships and increased sales from existing customers [14][20]. - The company achieved a gross margin of 39%, up from 26% in the previous year, primarily due to the increase in international sales [4][9]. Future Outlook - Village Farms anticipates continued profitable growth in 2026 and beyond, supported by capacity expansion projects and a strong balance sheet [3][4]. - The company plans to leverage its experience in controlled environment agriculture to capitalize on emerging cannabis opportunities globally [18][20].