Village Farms International, Inc. (NASDAQ:VFF) today reported its financial results for the second quarter that ended June 30, 2024, revealing that total sales grew 19% year-over-year to $92.1 million for the period.
The Vancouver-based company said Canadian cannabis grew net sales by 45% and retail branded sales by 35% year-over-year, as well as another quarter of positive adjusted EBITDA and operating cash flow.
Michael DeGiglio, president and CEO, said the company is "driving strong momentum in our Canadian Cannabis business."
"We have solidified our number two national market share rank in pre-rolls and further strengthened share in key provinces," De Giglio added. "In 12 months, we have improved to number two in British Columbia (from four) and number four in Alberta (from eight) and have maintained our number one position in Ontario and number two position in Quebec."
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Q2 2024 Financial Highlights
- Gross profit was $9.2 million, down from $11.5 million in the prior year's period.
- Selling, general and administrative expenses amounted to $19.7 million, up from $16.7 million in the same quarter of fiscal 2023.
- Consolidated net loss was $23.5 million, or $0.21 per share, compared with $1.4 million, or $0.01 per share in the corresponding period of last year.
- Adjusted EBITDA came in negative at 3.5 million, compared to a positive adjusted EBITDA of $4.5 million in the prior year's period.
- Consolidated cash flow from operations improved to $5.7 million from cash used in operations of $1.6 million.
- U.S. cannabis net sales totaled $4.3 million, down from $5.3 million in the prior year's period.
International Cannabis
The company is working on the build-out of its first indoor cannabis production facility in Drachten, The Netherlands for the Dutch recreational cannabis program, with production on track to begin in the fourth quarter of 2024.
The Netherlands recently expanded its legal cannabis program to eight new cities.
Initially launched last year in the municipalities of Tilburg and Breda the country's four-year cannabis experiment has entered its next stage. The expansion allowed for cannabis cafes, AKA coffeeshops in Groningen, Zaanstad, Almere, Arnhem, Nijmegen, Voorne aan Zee, Heerlen and Maastricht to sell marijuana and hashish produced by licensed growers.
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