The following is a summary of the Village Farms International (VFF) Q3 2024 Earnings Conference Call Transcript:
Financial Performance:
Village Farms International reported a robust Q3 with total sales growing 20% year-over-year to $83.4 million.
Fresh Produce segment saw a 20% increase in sales to nearly $43 million with a gross margin improvement of 400 basis points year-over-year.
Canadian cannabis operations grew 29% all organically to roughly CAD 15 million, alongside positive adjusted EBITDA of CAD 6.5 million and operating cash flow of CAD 6.1 million.Consolidated net loss narrowed to CAD 800,000 from a CAD 1.3 million loss the previous year, with both Canadian cannabis and Fresh Produce contributing positively to net income.
Business Progress:
Expansion in the Canadian cannabis market with #1 market share in Ontario and Quebec and continuous growth across all sales channels.
Introduction of new cannabis strains like Neon Lambo and commencement of trial sales from the BC trials program.
Initial cultivation begun at newly built indoor facility in the Netherlands with plans for first sales in the next fiscal quarter.
Opportunities:
International medical sales doubled year-over-year, with significant growth in Germany, Australia, and the UK, enhancing VFF's global footprint.
Potential market expansion in the Netherlands with an estimated market size of EUR 3 billion to EUR 3.5 billion annually, invoking comparisons to the province of Quebec.
Risks:
Experiencing stock-outs of popular SKUs in Canada, leading to an estimated lower sales impact of approximately $2.5 million in Q3. However, steps have been implemented to normalize stock levels by early next fiscal quarter.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
