Village Farms International (VFF) Q4 2024 earnings summary

Executive summary

• Full year 2024 consolidated sales grew 18% year-over-year to CAD 336 million, with Q4 sales up 11% to CAD 83 million, led by Canadian cannabis and international expansion, despite a significant inventory impairment.

• Canadian cannabis business achieved organic growth, maintaining a top-three market share and expanding international medicinal exports to five countries.

• Strategic focus shifted toward profitable sales, international expansion, and new product launches, including in-house vape manufacturing.

• The company is executing a global leadership strategy in regulated cannabis, with major developments in the Netherlands and international medical markets.

Financial highlights

• Q4 revenues were CAD 83 million, up 11% year-over-year; full year revenues reached CAD 336 million, up 18%.

• Q4 consolidated net loss improved to $8.6 million from $22.5 million last year; full year basic and diluted loss per share was $(0.32), unchanged year-over-year.

• Excluding a CAD 10.5 million inventory write-down, Q4 adjusted EBITDA was $7 million, and full year adjusted EBITDA was $12.2 million.

• Fresh produce Q4 sales rose 17% year-over-year to $43.3 million, with adjusted EBITDA of $4.1 million and net income of $1.9 million, aided by $3.5 million in vendor settlements.

• U.S. cannabis Q4 revenues were $4.6 million, with a 70% gross margin and positive adjusted EBITDA.

Outlook and guidance

• Management expects international medicinal cannabis sales to triple in 2025, driven by growth in Germany, Australia, UK, and new entry into New Zealand.

• Phase 2 expansion in the Netherlands will quadruple or quintuple production capacity, with planting expected in Q4 2025.

• Ongoing operational optimization in Canadian cannabis to improve efficiency and profitability.

• Confident in delivering profitable growth in 2025 and beyond.